Ratings Services has assigned its ‘R’ financial strength rating to Pafco General Insurance Co. (Pafco).
This rating action was taken pursuant to an Indiana circuit court directive on Oct. 17, 2003, that installed the Indiana Insurance Commissioner as rehabilitator of Pafco. Pafco is expected to renew current business and accept new business applications while in rehabilitation.
At year-end 2003, Pafco recorded a loss of $2.3 million. Pafco and sister company IGF Insurance Co. are wholly owned subsidiaries of Symons International Group Inc., a publicly traded holding company based in Indianapolis.
On July 12, 2000, Standard & Poor’s assigned its ‘CCCpi’ financial strength rating to Pafco, citing the company’s weak capital ratio, a 63.4% drop in surplus in 1999, poor underwriting results, and weak liquidity. The rating remained at ‘CCCpi’ until it was withdrawn on March 2, 2004.
Pafco writes automobile liability policies for nonstandard risks, such as those unable to obtain coverage through the standard market because of a poor driving record or the type of vehicle. The company distributes its product through agents in nine states, with the greatest concentration in the mid-western U.S. states.
An insurer rated ‘R’ is under regulatory supervision owing to its financial condition. During the pendency of the regulatory supervision, the regulators may have the power to favor one class of obligations over others or pay some obligations and not others. The rating does not apply to insurers subject only to nonfinancial actions such as market conduct violations.Ratings ListPafco General Insurance Co.Financial strength rating R
Was this article valuable?
Here are more articles you may enjoy.