AM Best has affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of 'a-' (Excellent) of
The outlook of these Credit Ratings (ratings) is stable.
The ratings reflect PCS' balance sheet strength, which AM Best assesses as strongest, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management (ERM).
The ratings of PCS also reflect the company's strong market share in
PCS is
In 2020, PCS maintained its risk-adjusted capitalization at the strongest level, as measured by Best's Capital Adequacy Ratio (BCAR); however, 2021 bottom line results have pressured its capital base. AM Best will continue to monitor the evolution of the capital base as the economic cycle unfolds. PCS continues to benefit from risk mitigation achieved through diversification and a robust and comprehensive reinsurance program with highly rated reinsurers.
PCS has maintained adequate operating performance, despite the ongoing stress on results derived from the COVID-19 pandemic. As of
The stable outlook reflects that recent price adjustments in lines affected by the COVID-19 pandemic, along with a higher vaccination rate in
Negative rating actions could occur if the company's underwriting results weaken, and result in a constant reporting of net losses. Negative rating actions may also occur if the company's risk-adjusted capitalization decreases due to capital outflows or net losses.
The methodology used in determining these ratings is Best's Credit Rating Methodology (Version
Key insurance criteria reports utilized:
Evaluating Country Risk (Version
Understanding Global BCAR (Version
Catastrophe Analysis in AM Best Ratings (Version
Available Capital & Holding Company Analysis (Version
Scoring and Assessing Innovation (
View a general description of the policies and procedures used to determine credit ratings. For information on the meaning of ratings, structure, voting and the committee process for determining the ratings and monitoring activities, please refer to Guide to Best's Credit Ratings.
Previous Rating Date:
Date Range of Financial Data Used:
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