AM Best awards rating to captive formed by Robert’s Hawaii Holdings
AM Best has assigned a financial strength rating of B++ (Good) to Mid-Pacific Insurance Company (MPIC), a single parent captive insurer of Robert’s Hawaii Holdings (RHH), a company primarily engaged in providing transportation services (tours, transfers, and municipal and school bus services) in Hawaii.
MPIC mainly provides commercial auto coverage for its parent’s operations.
The ratings reflect MPIC’s balance sheet strength, which AM Best categorizes as strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management.
AM Best said the ratings reflect MPIC’s balance sheet strength, strong liquidity position and its long-standing local commercial automobile market presence in Hawaii. These positive rating factors are derived from the company’s low underwriting leverage, as well as management’s focus on providing commercial automobile liability coverage for affiliated companies engaged in Hawaii’s tourism and public transportation business.
MPIC has relatively large retained limits relative to surplus. Furthermore, 2016 operating results have been impacted by adverse prior year reserve development. Company management believes that MPIC has taken initiatives to improve reserve accuracy and strengthen its risk management. AM Best will continue to closely monitor MPIC’s reserve adequacy.
