AM Best Places Credit Ratings of Pacific Pioneer Insurance Company Under Review With Developing Implications

OLDWICK, N.J.--(BUSINESS WIRE)-- AM Best has placed under review with developing implications the Financial Strength Rating of B+ (Good) and the Long-Term Issuer Credit Rating of “bbb-” of Pacific Pioneer Insurance Company (PPIC) (Cypress, CA). PPIC is a wholly owned subsidiary of Pacific Pioneer Insurance Group, Inc.

The Credit Rating (rating) actions follow the completion of a stock purchase agreement for a third party to acquire PPIC from Pacific Pioneer Insurance Group, Inc. The transaction, subject to customary closing conditions and regulatory approvals, is expected to close in second-quarter 2020.

The ratings will remain under review pending the completion of the transaction and AM Best’s discussions with PPIC’s management. The developing implications are due primarily to the potential of positive or negative rating factors that may result post-acquisition. AM Best will continue to hold discussions with PPIC’s management throughout the process, and will monitor PPIC’s risk-adjusted capitalization, operating performance, business profile and enterprise risk management.

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 Understanding Best’s Credit Ratings. For information on the proper media use of Best’s Credit Ratings and AM Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and AM Best Rating Action Press Releases.

AM Best is a global credit rating agency, news publisher and data provider specializing in the insurance industry. The company does business in more than 100 countries. Headquartered in Oldwick, NJ, AM Best has offices in cities around the world, including London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

Copyright © 2019 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

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Kenneth Tappen

Senior Financial Analyst

+1 908 439 2200, ext. 5721

[email protected]

Richard Attanasio

Senior Director

+1 908 439 2200, ext. 5432

[email protected]

Christopher Sharkey

Manager, Public Relations

+1 908 439 2200, ext. 5159

[email protected]

Jim Peavy

Director, Public Relations

+1 908 439 2200, ext. 5644

[email protected]

Source: AM Best