AM Best Assigns Credit Ratings to Platinum Transport Insurance Risk Retention Group, Inc.

Business Wire

OLDWICK, N.J.--(BUSINESS WIRE)--
AM Best has assigned a Financial Strength Rating of A- (Excellent) and a Long-Term Issuer Credit Rating of “a-” (Excellent) to Platinum Transport Insurance Risk Retention Group, Inc. (Platinum) (Honolulu, HI). The outlook assigned to these Credit Ratings (ratings) is stable.

The ratings reflect Platinum’s balance sheet strength, which AM Best assesses as strong, as well as its strong operating performance, limited business profile and appropriate enterprise risk management.

Platinum is a risk retention group (RRG) providing monoline commercial auto liability coverage to its members, focusing on owner-operators and small fleet trucking companies. Its strong balance sheet strength assessment reflects Platinum’s strongest level of risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), and an appropriate reinsurance structure from top-rated reinsurers, offset by limited access to capital and financial flexibility. As an RRG, Platinum does not have access to state guarantee funds. It aggregates potential capital support from its policy-holding members, contributed on a ‘per power unit’ basis, at an upstream affiliated holding company as a potential capital source for unexpected losses.

Platinum has doubled its surplus over the last five years through very good underwriting results in its growing book of business. The company’s five-year average combined and operating ratios align appropriately with companies having strong operating performance assessments within AM Best’s commercial auto liability composite. Platinum’s risk management framework is embedded within its strict underwriting guidelines and claims handling policies. To bolster results, the company brought its claims management ‘in-house’ in 2020, to an affiliate it created after a sub-optimal experience with a TPA (third-party administrator) it had used since inception, which was not adequately complementing its rigid underwriting and monitoring processes.

The stable outlooks reflect AM Best's expectation that Platinum will maintain its strong balance sheet strength and strong operating performance, while strengthening its surplus level through profitable results.

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. For more information, visit www.ambest.com.