OLDWICK, N.J.--(BUSINESS WIRE)--
A.M. Best Co. has placed under review with negative implications
the financial strength rating of B+ (Good) and issuer credit rating of
“bbb-” of PrimeOne Insurance Company(PrimeOne) (Farmington
Hills, MI).
The under review status reflects the uncertainty concerning the
strategic direction of the company following both the president and
chief operating officer no longer being with the company. Daniel G.
Gibson, formerly executive vice president and chief financial officer,
has assumed the role of president and CEO. Mr. Gibson brings to the role
over 30 years of experience in the property/casualty industry.
The rating action also reflects A.M. Best’s uncertainty regarding
PrimeOne’s current business plan given the change in leadership and the
concern with its ability to execute its business plan successfully. The
company’s current ratings acknowledge the considerable challenges and
execution risk associated with a start-up company, though it currently
has sufficient capital to support business written to date.
A.M. Best anticipates PrimeOne’s ratings will be removed from under
review after a credible business plan is submitted for review to help
better understand the company’s planned course over the near and longer
term. The analysis of the prospective business also will assess the
perceived likelihood of the company successfully carving out a business
niche as a provider of coverage for commercial risks in its home state
of Michigan.
The methodology used in determining these ratings is Best’s Credit
Rating Methodology, which provides a comprehensive explanation of A.M.
Best’s rating process and contains the different rating criteria
employed in the rating process. Key criteria utilized include: “Risk
Management and the Rating Process for Insurance Companies”;
“Understanding BCAR for Property/Casualty Insurers”; and “Rating
Members of Insurance Groups”. Methodologies can be found at www.ambest.com/ratings/methodology.
Founded in 1899, A.M. Best Company is the world's oldest and most
authoritative insurance rating and information source. For more
information, visit www.ambest.com.
Copyright © 2012 by A.M. Best Company, Inc.ALL RIGHTS
RESERVED.
A.M. Best Co.
David Blades, CPCU, 908-439-2200, ext. 5422
Senior
Financial Analyst
david.blades@ambest.com
or
Rachelle
Morrow, 908-439-2200, ext. 5445
Senior Manager, Public
Relations
rachelle.morrow@ambest.com
or
Henry
K. Witmer, CPCU, ARM-E, 908-439-2200, ext. 5097
Assistant
Vice President
henry.witmer@ambest.com
or
Jim
Peavy, 908-439-2200, ext. 5644
Assistant Vice President,
Public Relations
james.peavy@ambest.com
Source: A.M. Best Co.
| Copyright: | Copyright Business Wire 2012 |
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