OLDWICK, N.J.--(BUSINESS WIRE)--AM Best has affirmed the Performance Assessment (assessment) of PA-3 (Strong) of Cargo Risk Corporation (Cargo Corp) (Miami, FL). The outlook of the assessment is stable.
The assessment reflects Cargo Corp’s strong underwriting capabilities, strong governance and internal controls, strong financial condition, strong organizational talent and strong depth and breadth of relationships.
Cargo Corp is a managing general agent (MGA) specializing in providing capacity for marine cargo lines in the Latin American market. Since writing its first program in 2015, Cargo Corp has proven its underwriting expertise by producing profitable business for its carrier partners. Cargo Corp’s underwriting capabilities further benefit from its experienced underwriting staff. Embedded in the underwriting process is the use of an internal and proprietary software system that provides the company with detailed assessments of risk and real-time feedback for insureds with potential exposures. The limited track record of several of the company’s programs is considered a partially offsetting factor.
Cargo Corp’s governance and internal controls are strong given its size and scale. Cargo Corp has designed and implemented a robust internal audit process to ensure that the company’s policies and procedures align with its strategic objectives. The company has an experienced board of directors that features internal and external members. Key person risk exists, but processes are in place to moderate the impact should an issue occur.
Cargo Corp’s financial condition is supported by a trend of consistently profitable earnings and continued positive net worth. AM Best will continue to closely monitor the company’s performance during this growth phase. Stability of income benefits from the range of programs underwritten by the company. The company is privately held, and all insurance risk is placed outside the organization.
The company is staffed more than appropriately for its size and scale with extensive industry experience in marine cargo. Its organizational structure is compact for ease of communication and efficient work processes. Many processes are retained in-house to ensure consistency and provide flexibility. While Cargo Corp has faced turnover in the last few years, the company has continued to grow its underwriting and overall staff.
Cargo Corp’s portfolio of programs has progressed since its founding. The company offers a range of programs in its target market of marine cargo and affiliated coverage in Latin America. Management continues to monitor growth opportunities in new markets, as well as maintain relationships with well-rated capacity providers.
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