Market Overview

A.M. Best Downgrades Credit Ratings of 21st Century Security Insurance Company; Places Under Review With Negative Implications


A.M. Best has downgraded the Financial Strength Rating to A-
(Excellent) from A (Excellent) and the Long-Term Issuer Credit Rating to
"a-" from "a" of 21st Century Security Insurance Company (21st
Century Security), following its acquisition by High Point Preferred
Insurance Company
, a subsidiary of Palisades Safety and Insurance
(PSIA), on Aug. 1, 2018. PSIA is a reciprocal
insurance exchange that is managed by its attorney-in-fact, Plymouth
Rock Management Company of New Jersey. Additionally, A.M. Best has
placed these Credit Ratings (ratings) under review with negative
implications. All companies are headquartered in Red Bank, NJ.

The ratings reflect 21st Century Security's balance sheet strength,
which A.M. Best categorizes as very strong, as well as its adequate
operating performance, limited business profile and appropriate
enterprise risk management.

The downgrade and negative implications status reflects 21st Century
Security's new ownership structure and A.M. Best's need to assess the
strategic and financial plans for the company. A.M. Best expects to
resolve the under review status of the ratings following more in-depth
discussions with the company's management team.

This press release relates to Credit Ratings that have been published
on A.M. 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 A.M. Best's
Rating Activity
web page. For additional information
regarding the use and limitations of Credit

Rating opinions, please view Understanding
Best's Credit Ratings
. For information on the proper media
use of Best's Credit Ratings and A.M. Best press releases, please view
for Media - Proper Use of Best's Credit Ratings and A.M. Best Rating
Action Press Releases

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