Best’s News & Research Service - October 26, 2023 10:45 AM (EDT)
AM Best Upgrades Credit Ratings of Members of Penn National Insurance Companies
- October 26, 2023 10:45 AM (EDT)
Oldwick //BestWire// - AM Best has upgraded the Financial Strength Rating to A (Excellent) from A- (Excellent) and the Long-Term Issuer Credit Ratings to “a” (Excellent) from “a-” (Excellent) of Pennsylvania National Mutual Casualty Insurance Company (Penn Mutual), its subsidiaries, Penn National Security Insurance Company and Founders Insurance Company, and its mutual company affiliate, Partners Mutual Insurance Company (Waukesha, WI), collectively referred to as Penn National Insurance Companies (Penn National). Concurrently, AM Best has upgraded the Long-Term Issue Credit Rating to “bbb+” (Good) from “bbb” (Good) of $29.5 million, 9.5% surplus notes, due 2034, issued by Penn Mutual. All companies are headquartered in Harrisburg, PA, unless otherwise specified. The outlook of these Credit Ratings (ratings) has been revised to stable from positive.
The ratings reflect Penn National’s balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management.
The rating upgrades reflect an enhanced view of Penn National’s overall balance sheet strength, which is supported by its strongest level of risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR). The improved view of the balance sheet strength also considers the group’s strong capital position, organic surplus growth, prudent investment portfolio and favorable reserve development in recent years.
Penn National’s ratings are supported by the group’s solid operating performance in recent years, driven primarily by investment income. Penn National is a multiline property/casualty writer with a diversified product mix of commercial and personal lines offerings, with personal and commercial auto as its largest lines of business. The group remains geographically concentrated with approximately 40% of its premiums written in its home state of Pennsylvania.
This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best’s Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.
AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City.