AM Best Removes From Under Review With Negative Implications and Affirms Credit Ratings of The Pie Insurance Company and Pie Casualty Insurance Company

AM Best has removed from under review with negative implications and affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of “a-” (Excellent) of The Pie Insurance Company (Columbus, OH) and its pooled affiliate, Pie Casualty Insurance Company (Chicago, IL), collectively referred to as Pie Insurance Group (Pie). The outlook assigned to these Credit Ratings (ratings) is stable.

The ratings reflect Pie’s balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management.

The ratings were initially placed under review with negative implications on March 8, 2024, following the organization’s 2023 results, which included material underwriting losses brought on by adverse reserve development in its New York book of business (see related press release). The reserves have stabilized since third-quarter 2023 and management has derisked the balance sheet significantly through commutation of their reserves.

The ratings have been removed from under review with negative implications as AM Best has completed its assessment of the impact of the commutation on the rated entities and consolidated risk-adjusted capitalization. Post-commutation, Pie’s risk-adjusted capitalization for year-end 2024, as measured by Best’s Capital Adequacy Ratio (BCAR), was at the strongest level and is expected to remain at the strongest level for the next couple years. Sufficient capitalization and liquidity are expected at the consolidated level in the near to midterm, supporting Pie’s very strong balance sheet assessment. Pie achieved profitability in fiscal-year 2024 and expects to remain profitable in the coming years. The ratings also consider the execution risk inherent in startup organizations and the potential challenges management faces to execute on the business plan. As is customary, AM Best will monitor Pie’s actual results relative to its plan.

The stable outlooks reflect AM Best’s expectation that Pie will maintain its current balance sheet strength assessment, supported by its strongest level of risk-adjusted capitalization. as well as sufficient capitalization and liquidity at the consolidated level, while meeting its operating performance targets.

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 pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best's Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

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 over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

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