A.M. Best has removed niche liability insurer Pacific International Insurance from under review with developing implications, and affirmed the B++ (good) financial strength rating and “bbb” long-term issuer credit rating of the firm. The outlook of these ratings is stable.
The ratings agency placed Pacific’s ratings under review with developing implications in April after it was notified of the insurer’s business plans and prospective scope of operations.
A niche insurer that mainly underwrites general liability and professional indemnity products for the pest control and building inspection industries in Australia and New Zealand, Pacific made a strategic shift in its business after it acquired South Africa-based Badger International. In the same vein, it also acquired the renewal rights of a sizeable portfolio of existing motor business in Australia, which was distributed by affiliated underwriting agencies of the Badger group.
“The ratings reflect Pacific’s balance sheet strength, which A.M. Best categorizes as strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management (ERM),” A.M. Best said. “These ratings also factor in a neutral holding company impact from Pacific’s ultimate ownership by the Badger group.”
A.M. Best also noted the strategic change will result in Pacific’s “increased operational scale and better product line diversification over time,” with the company expected “to remain a modest-sized player in the Australian and New Zealand markets.”
