A.M. Best Co. has assigned a financial strength rating of B++ (Very Good) to Primary Insurance Company Limited (PICL) (Dublin, Ireland). The outlook is stable.
The rating reflects PICL’s very good capitalization and improving business profile. Offsetting factors are the company’s relatively modest business position and the impact a loan to its parent company has on its risk-adjusted capitalization.
PICL’s very good risk-adjusted capitalization reflects its unleveraged balance sheet, low risk investment portfolio (investments mainly comprise major bank deposits) and short tail underwriting exposure. A.M. Best’s assessment of the company’s risk-adjusted capital factors the existing EUR 9.3 million (USD 11.8 million) redeemable loan to its parent company, including the impact that this loan has on PICL’s liquidity.
PICL is a relatively small insurance company (anticipated 2004 gross written premiums of EUR 48 million (USD 61 million)) with a modest profile in the United Kingdom market, where it writes most of its business.
However, A.M. Best believes that PICL is likely to continue to improve its business profile through internal distribution channels, either through additional agencies acquired by its ultimate parent, Primary Group Limited (PGL), or organic growth from agencies that PGL already owns.
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