AM Best has made a significant update regarding The Pie Insurance Company and its affiliate, Pie Casualty Insurance Company. The ratings agency has affirmed their Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of “a-” (Excellent). This comes after the ratings were put under review with negative implications earlier this year due to some financial challenges.
The review began on March 8, 2024, after Pie Insurance reported substantial underwriting losses tied to issues in its New York operations. However, since then, the company has taken steps to stabilize its reserves and improve its financial position. Management has worked hard to reduce risks by adjusting their reserves, which has helped them regain a stronger footing.
Now that AM Best has completed its evaluation, they have lifted the negative review. The agency noted that Pie Insurance’s risk-adjusted capitalization is now at its strongest level, a positive sign for the company’s future. They expect this strong position to continue for at least the next couple of years.
In addition to solid capitalization, Pie Insurance is expected to maintain good liquidity. This financial stability supports their overall strong balance sheet. The company reported profitability in the fiscal year 2024 and anticipates continued success in the years ahead.
However, AM Best also pointed out that there are risks involved with startup companies like Pie Insurance. The management will need to effectively carry out their business plan to ensure ongoing success. AM Best plans to keep an eye on how Pie performs compared to its goals.
Overall, the outlook for Pie Insurance is stable, reflecting confidence in their ability to maintain their strong financial position while achieving their operational targets.