OLDWICK, N.J., October 28, 2021--(BUSINESS WIRE)--AM Best has revised the outlooks to negative from stable and affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of "a-" (Excellent) of Western Pacific Mutual Insurance Company, A Risk Retention Group (WPMIC) (Littleton, CO).
The ratings reflect WPMIC’s balance sheet strength, which AM Best assesses as strongest, its adequate operating performance, limited business profile and appropriate enterprise risk management.
The revised outlooks are due to recent volatility in WPMIC’s underwriting performance. This volatility is attributed to growth in the company’s deductible builder program, which has led to an increase in claims activity in its warranty business. Timing issues related to reimbursements for those deductibles from the builders in the deductible program have led to net losses in each of the past two years. However, despite this recent volatility, WPMIC continues to maintain supportive risk-adjusted capitalization for its current book of business.
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 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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