AM Best has revised its outlook for the Plymouth Rock Assurance Group to positive from stable while affirming the group’s key financial strength ratings.
The rating agency affirmed the Financial Strength Rating (FSR) of A- (Excellent) and the Long-Term Issuer Credit Rating of “a-” (Excellent) for the members of Plymouth Rock Assurance Group (PRAG). At the same time, AM Best affirmed the same ratings for the members of the Plymouth Rock Home Assurance Group (PRHAG), with a stable outlook.
Positive outlook reflects growth and market position
AM Best said the ratings for PRAG reflect the group’s very strong balance sheet, adequate operating performance, limited business profile and appropriate enterprise risk management.
The revision to a positive outlook reflects Plymouth Rock’s strong position in the Northeast private passenger auto market, particularly in Massachusetts. The group has built a recognized brand and a diverse distribution network that supports continued growth.
Although the company remains heavily concentrated in Massachusetts—exposing it to weather risks and regulatory changes— its expansion into New York, Connecticut and Pennsylvania, has helped diversify its geographic exposure.
In Massachusetts, Plymouth Rock’s private passenger auto market share has grown to more than 8%, supported by profitable growth and disciplined underwriting.
AM Best also noted the role of Pilgrim Insurance Company, a wholly owned subsidiary that serves the residual auto market. Pilgrim provides additional stability through insurance market cycles and helps diversify Plymouth Rock’s operations.
Homeowners affiliate maintains stable outlook
AM Best affirmed the same A- (Excellent) ratings for the Plymouth Rock Home Assurance Group but maintained a stable outlook.
The ratings reflect the group’s very strong risk-adjusted capitalization, as measured by AM Best’s Capital Adequacy Ratio (BCAR), and steady growth in policyholders’ surplus over the past five years.
However, AM Best said these strengths are partly offset by recent volatility in loss reserves and historically higher levels of equity leverage.
Despite those challenges, the group’s operating performance remains adequate, supported by five- and 10-year average combined ratios that are slightly better than industry peers, noted the rating agency.
PRHAG’s business profile is more limited because it focuses primarily on homeowners’ insurance, which exposes the company to weather-related losses and regulatory risks. Like PRAG, the group is also concentrated in Massachusetts.
AM Best said PRHAG benefits from its close relationship with Plymouth Rock Assurance Group, including operational integration, shared branding and strategic support.
Companies included in the ratings
AM Best affirmed the ratings for the following members of the Plymouth Rock Assurance Group:
- Plymouth Rock Assurance Corporation of New York
- Plymouth Rock Assurance Corporation
- Plymouth Rock Assurance Preferred Corporation
- Pilgrim Insurance Company
- Mt. Washington Assurance Corporation
The following companies are included in the Plymouth Rock Home Assurance Group ratings:
- Plymouth Rock Home Assurance Corporation
- Bunker Hill Insurance Casualty Company
- Bunker Hill Property Insurance Company
- Bunker Hill Insurance Company
- Bunker Hill Preferred Insurance Company
AM Best said continued growth, geographic diversification and refinement of the group’s underwriting portfolio could support future improvement in Plymouth Rock’s business profile.
