JULY 22, 2013 — Standard & Poor’s Ratings Services has raised its rating of the American P&I Club’s financial strength a full notch from BB+ to BBB-, an investment grade, with a stable outlook.
This action, taken July 18, follows a comprehensive review of the club’s current and prospective circumstances under new S&P criteria for the rating of insurance companies which it has now extended to 14 marine mutual insurers.
In its rationale for increasing the club’s rating to an investment grade, S&P cited its improved view of the club’s prospective capital adequacy, its business risk profile and competitive position. The agency also referred to the club’s enhanced underwriting risk controls which, among other things, have caused the club’s average loss ratios to register a downward trend in recent years.
Speaking in New York, Joe Hughes, Chairman and CEO of SCB Inc., the club’s managers, said that the agency’s step-up to an investment grade was a very positive development for the 96-year-old American Club.
He added: “Given the significance sometimes attached in certain sectors to an S&P investment grade rating, it will amplify our continuing outreach in serving the global maritime community.”