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FOR IMMEDIATE RELEASE
OLDWICK - MAY 07, 2015 08:30 AM (EDT)
A.M. Best has revised the outlook to positive from stable and affirmed the financial strength rating (FSR) of B+ (Good) and the issuer credit ratings (ICR) of "bbb-" for the members of Palisades Group (Palisades) (Berkeley Heights, NJ) and the members of High Point Homeowners Group (High Point) (Red Bank, NJ). These entities are all operating subsidiaries of their parent company, Palisades Safety and Insurance Association. (See below for a detailed listing of the companies).
The positive outlooks reflect Palisades and High Point's improved underwriting and operating performance over the past two years, which has led to a more stable risk-adjusted capitalization position. The core books of business have shown recent improvement in performance as a result of underwriting discipline and rate actions. The groups also have benefited from milder weather patterns over the past two years.
The rating affirmations reflect each group's adequate risk-adjusted capitalization, as well as management's extensive experience and expertise in the New Jersey automobile and homeowners insurance markets. The groups utilize several different distribution channels to produce business and maintain their market share in the competitive and challenging New Jersey insurance market. Conversely, as single state writers, Palisades and High Point remain susceptible to frequent and severe localized weather and to economic, judicial and regulatory issues.
A continued pattern of operating profitability would be necessary in order to consider further positive rating movement. Conversely, any deterioration in operating results and risk-adjusted capitalization could lead to consideration of downward rating movement.
The FSR of B+ (Good) and the ICRs of "bbb-" have been affirmed and the outlook revised to positive from stable for the following members of the Palisades Group:
The FSR of B+ (Good) and the ICRs of "bbb-" have been affirmed and the outlook revised to positive from stable for the following members of the High Point Homeowners Group:
The methodology used in determining these ratings is Best's Credit Rating Methodology, which provides a comprehensive explanation of A.M. Best's rating process and contains the different rating criteria employed in the rating process. Best's Credit Rating Methodology can be found at www.ambest.com/ratings/methodology .
Key insurance criteria reports utilized:
This press release relates to rating(s) that have been published on A.M. 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 visit A.M. Best's Ratings & Criteria Center.
A.M. Best Company is the world's oldest and most authoritative insurance rating and information source.