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FOR IMMEDIATE RELEASE
OLDWICK, N.J. - JANUARY 23, 2013 12:00 AM (EST)
A.M. Best Co. has placed under review with negative implications the financial strength rating of A (Excellent) and issuer credit rating of “a” of both Pacific Specialty Insurance Company (Menlo Park, CA) and its wholly owned subsidiary, Pacific Specialty Property and Casualty Company (Austin, TX).
The under review status reflects A.M. Best's uncertainty of Pacific Specialty's ultimate control and future strategic direction of the companies given recent director and shareholder initiated litigations. The rating actions also reflect concern with Pacific Specialty's ability to execute its current business plan successfully. The ratings will likely remain under review pending further discussions with the management at both the parent company level and Pacific Specialty regarding future plans and the potential impact on Pacific Specialty's operation.
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. Key criteria utilized include: “Rating Members of Insurance Groups” and “Risk Management and the Rating Process for Insurance Companies.” Best’s Credit Rating Methodology can be found at www.ambest.com/ratings/methodology.
Founded in 1899, A.M. Best Company is the world’s oldest and most authoritative insurance rating and information source.