AM Best Affirms Credit Ratings of Philadelphia Insurance Companies’ Members

NOVEMBER 08, 2024 02:21 PM (EST)

AM Best Affirms Credit Ratings of Philadelphia Insurance Companies' Members

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FOR IMMEDIATE RELEASE

OLDWICK - NOVEMBER 08, 2024 02:21 PM (EST)
AM Best has affirmed the Financial Strength Rating of A++ (Superior) and the Long-Term Issuer Credit Ratings of "aa+" (Superior) of Philadelphia Indemnity Insurance Company and its affiliate, Tokio Marine Specialty Insurance Company (both headquartered in Bala Cynwyd, PA), which operate under a pooling agreement, collectively referred to as Philadelphia Insurance Companies (Philadelphia). The outlook of these Credit Ratings (ratings) is stable.

The ratings reflect Philadelphia's balance sheet strength, which AM Best assesses as strongest, as well as its strong operating performance, favorable business profile and very strong enterprise risk management (ERM).

Philadelphia's risk-adjusted capitalization remains at the strongest level, as measured by Best's Capital Adequacy Ratio (BCAR), and continues to benefit from consistent operating profitability and investment income. In addition, Philadelphia's retained earnings and a highly diversified invested asset base provide depth and breadth to the balance sheet. The ratings also recognize the group's position as an established market leader in specialty markets, as well as its exceptional diversification by jurisdiction, product line, market segment and distribution channel. The ratings also consider the operational, financial and ERM support provided by Tokio Marine & Nichido Fire Insurance Co., Ltd., which is the lead insurance operating company in the Tokio Marine Holdings, Inc. organization. This support includes day-to-day operational synergies across its U.S.-based subsidiaries, reinsurance support and sophisticated economic capital modeling.

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.