AM Best has finally upgraded their Long-Term Issuer Credit Rating (Long-Term ICR) from “bbb” to “bbb+” and have also affirmed the PVI Insurance Corporation’s Financial Strength Rating of B++ to be good. The result of these Credit Ratings seems to be stable.
The ratings show the strength of the balance sheet of PVI Insurance that AM Best is categorizing as very strong, and also its sufficient operating performance, suitable enterprise risk management (ERM), and neutral business profile and furthermore, PVI Insurance is benefitting from the rating enhancement from HDI Haftpflichtverband der DeutschenIndustrieV.a.G.
The upgrade of Long-Term ICR is following the increased ultimate ownership of the HDI group of PVI Insurance as well as the resulting implicit support which AM Best is expecting the subsidiary to profit from over the coming term. In the first half of the year 2019, the HDI group has obtained a majority of the ultimate ownership. Despite the operations of PVI Insurance accounting for a small component of the overall revenues as well as earnings of HDI V.a.G., the company is being considered significant to the plans of the international expansion of HDI group.
The strength assessments of the balance sheet of PVI Insurance is underpinned by the capitalization that is adjusted by risk which AM Best expects for remaining at the strongest level in the medium term, as calculated by Best’s Capital Adequacy Ratio (BCAR). A somewhat offsetting factor of balance sheet is continuing to be the high reinsurance usage of the company and dependence for enabling the underwriting of great commercial property, the energy and engineering risks.