OLDWICK, N.J.–(BUSINESS WIRE)–#insurance—AM Best has maintained the under review with negative implications status for the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Ratings of “a-” (Excellent) of The Pie Insurance Company (Columbus, OH) and its pooled affiliate, Pie Casualty Insurance Company (Chicago, IL), collectively referred to as Pie Insurance Group (Pie).
These Credit Ratings (rating) were initially placed under review with negative implications on March 8, 2024, following the organization’s 2023 results, which included material underwriting losses brought on by adverse reserve development in its New York book of business (see related press release). The reserves have stabilized since third-quarter 2023 and the management has derisked the balance sheet significantly through commutation of their reserves.
The ratings will remain under review with negative implications until AM Best is able to fully assess the impact of the commutation on rated entity and consolidated risk-adjusted capitalizations. The negative implications point to uncertainty related to overall financial strength at the holding company level.
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. For more information, visit www.ambest.com.
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