AM Best confirms credit ratings for property and casualty insurance company

OLDWICK, NJ–(BUSINESS WIRE)–AM Best Affirmed Financial Strength Rating of A (Excellent) and Issuer Long-Term Credit Rating of “a” (Excellent) from Protective Property & Casualty Insurance Company (Protective P&C) (St. Louis, MO). The outlook for these Credit Ratings (ratings) is stable.

The ratings reflect Protective P&C’s balance sheet strength, which AM Best assesses as very strong, as well as adequate operating performance, neutral business profile and appropriate enterprise risk management (ERM). The ratings also reflect the upgraded rating of its parent company, Protective Life Insurance Company (Protective Life).

Protective P&C’s balance sheet strength rating is supported by the highest level of risk-adjusted capitalization as measured by Best’s capital adequacy ratio (BCAR), good asset quality, balance sheet and an annual organic growth of the surplus derived from profits, which is partially compensated by annual dividends to the parent company. Balance sheet strength is somewhat undermined by Protective P&C’s extensive use of unrated reinsurance arrangements held by dealers. AM Best considers the company’s operating performance to be adequate based on its consistent track record of profitability, with performance measures and underwriting ratios remaining on par with its composite group of warranty insurer peers.

Protective P&C specializes in coverage for vehicle maintenance contracts and guaranteed asset protection products for automobiles, boats, powersports vehicles and recreational vehicles, sold primarily through franchise dealers and independent agents. The neutral business profile reflects the company’s concentration of underwriting risk in the highly competitive auto warranty market, offset by its geographic diversification. The company’s ERM is tailored to its risk profile and is integrated with that of its parent company, Protective Life.

An upgrade in rating was given to Protective P&C due to the implicit support of its higher rated parent company, its integration into the organization and its support for the organization’s asset protection strategy.

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 relevant disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Assessment Activity Web page. For more information on the use and limitations of credit rating opinions, please see Best Credit Score Guide. For more information on the proper use of Best’s Credit Ratings, Best’s Performance Ratings, Best’s Preliminary Credit Ratings, and AM Best’s press releases, please see Guide to Proper Use of Best’s Ratings and Reviews.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in more than 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit

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