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.
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