AM Best Confirms Park Assurance Company Credit Ratings

OLDWICK, NJ–(BUSINESS WIRE)–
AM Best affirmed the financial strength rating of A (Excellent) and the issuer’s long-term credit rating of “a” (Excellent) from Park insurance company (To park) (Colchester, Vermont). The outlook for these Credit Ratings (ratings) is stable.

The ratings reflect Park’s balance sheet strength, which AM Best rates as the strongest, as well as its strong operational performance, limited business profile and appropriate management of business risks.

Park’s strongest risk-adjusted capital position, as measured by Best’s Capital Adequacy Ratio (BCAR), reflects its conservative loss provisioning practices and favorable development trends, as well as its portfolio of prudent investment and its strong liquidity measures. Park is well capitalized through retained earnings as the captive has consistently delivered favorable pure loss ratios in combination with its low cost underwriting expense structure to produce favorable operating earnings year after year which has outperformed the composite commercial real estate by a wide margin. The ratings further reflect Park’s sophisticated risk management strategy and practices, its experienced management team and its integral role as a single parent captive of JPMorgan Chase Holdings, LLCwhich is a subsidiary of JPMorgan Chase & Co. (JPMorgan Chase) [NYSE: JPM], a leading global financial services group; however, Park’s business profile is considered limited due to its product concentration risk, offering limited lines of coverage on a net basis.

These factors are partially offset by moderate growth in surplus due to capital being returned to its parent company in the form of periodic dividends to shareholders and its large underwriting risk appetite on a gross basis. The potential credit risk associated with Park’s extensive use of reinsurance, which management uses to mitigate its exposure to outsized losses at high-value insured sites, as well as its reliance on the protection afforded by the reauthorization of the terrorism risk insurance program, are also offsetting factors. .

Park provides JPMorgan Chase with worldwide property coverage, including terrorism, as well as general bankers surety and, prior to 2017, general liability coverage. These hedges are key elements of JPMorgan Chase’s risk management strategy, and Park has the explicit support of the group’s significant financial resources and extensive professional resources.

Advertising

AM Best remains the leading rating agency for alternative risk transfer entities, with over 200 such vehicles rated in United States and across the world. For Best’s current credit ratings and independent data on the captive and alternative risk transfer insurance market, please visit www.ambest.com/captive.

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 relevant disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please visit AM Best’s Recent Rating Activity web page. For more information on the use and limitations of credit rating opinions, please see Best’s Guide to Credit Ratings. For more information on the proper use of Best’s Credit Scores, Best’s Performance Ratings, Best’s Preliminary Credit Ratings, and AM Best’s press releases, please see the Guide to Proper Use of Best’s Best ratings and reviews.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Based at United Statesthe company does business in more than 100 countries with regional offices in London, amsterdam, dubai, hong kong, Singapore and Mexico City. For more information, visit www.ambest.com.

Copyright © 2022 by AM Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

src=”https://cts.businesswire.com/ct/CT?id=bwnewssty=20220210005887r1sid=acqr8distro=nxlang=en” style=”width:0;height:0″ />

Fred Eslami
Associate Director

+1 908 439 2200 ext. 5406

[email protected]

Daniel Teclaw
Associate Director

+1 908 439 2200 ext. 5394

[email protected]

Christopher Sharkey
Manager, Public Relations

+1 908 439 2200 ext. 5159

[email protected]

Jim Peavy
Director, Communications

+1 908 439 2200 ext. 5644

[email protected]

Source: AM Best

About Ian Crawford

Check Also

Identity Theft Protection Services Market to Surpass US Dollar

Newark, June 16, 2022 (GLOBE NEWSWIRE) — According to report published by The Brainy Insights, …