The ratings reflect PICL’s balance sheet strength, which AM Best categorizes as adequate, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management.
The rating downgrades reflect a deterioration in AM Best’s view of PICL’s balance sheet strength fundamentals. The company’s risk-adjusted capitalization for the fiscal year-ended
The aforementioned tax liability follows an unfavorable court ruling for PICL in
The under review with negative implications status reflects the uncertainty that remains around the finalization of PICL’s year-end 2019 financial position, as well as prospective expectations. In order to resolve the under review status, AM Best expects to conduct a full assessment on PICL’s medium-term balance sheet strength fundamentals, as well as undertake a further review of risk management capabilities and capital management in light of increasing operational scale and widening product offerings. AM Best will give consideration to any developments regarding PICL’s appeal of the recent court judgement and execution of its planned capital raising actions.
Ratings are communicated to rated entities prior to publication. Unless stated otherwise, the ratings were not amended subsequent to that communication.
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Source: AM Best