Market Overview

A.M. Best Upgrades Credit Ratings of Members of Palisades Group and High Point Homeowners Group

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A.M. Best has upgraded the Financial Strength Rating (FSR) to A-
(Excellent) from B++ (Good) and the Long-Term Issuer Credit Ratings
(Long-Term ICR) to "a-" from "bbb" for the members of Palisades Group
(Palisades) and High Point Homeowners Group (High Point). The
outlook for all Credit Ratings (ratings) is stable. These entities are
operating subsidiaries of their parent company, Palisades Safety and
Insurance Association
. All companies are headquartered in Red Bank,
NJ. (See below for a detailed listing of the companies.)

Palisades' ratings reflect its 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.

High Point's ratings reflect its balance sheet strength, which A.M. Best
categorizes as very strong, as well as its strong operating performance,
limited business profile and appropriate enterprise risk management.

The rating upgrades reflect Palisades and High Point's improved
underwriting and operating performance in recent years and enhancements
to their catastrophe reinsurance program, which has improved
risk-adjusted capitalization. Performance also has improved in the core
books of business as a result of underwriting discipline and rate
actions. The groups, which operate under the Plymouth Rock Assurance
brand name, also have benefited from milder weather patterns in recent
years. The ratings also reflect management's extensive experience and
expertise in the New Jersey automobile and homeowners' insurance
markets. The groups, which recently entered the Pennsylvania market and
have applications for licensure pending in New York and Connecticut,
utilize several distribution channels to produce business and maintain
their market share in New Jersey's competitive and challenging insurance
market. Conversely, as predominantly single state writers, Palisades and
High Point remain susceptible to frequent and severe localized weather
and to economic, judicial and regulatory issues.

The FSR has been upgraded to A- (Excellent) from B++ (Good) and the
Long-Term ICRs have been upgraded to "a-" from "bbb", all with stable
outlooks, for the following members of the Palisades Group:

  • Palisades Safety and Insurance Association
  • Palisades Insurance Company
  • High Point Property and Casualty Insurance Company
  • High Point Safety and Insurance Company
  • Twin Lights Insurance Company
  • Teachers Auto Insurance Company of New Jersey

The FSR has been upgraded to A- (Excellent) from B++ (Good) and the
Long-Term ICRs have been upgraded to "a-" from "bbb" , all with stable
outlooks, for the following members of the High Point Homeowners Group:

  • High Point Preferred Insurance Company
  • Palisades Property and Casualty Insurance Company

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
Recent
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
Guide
for Media - Proper Use of Best's Credit Ratings and A.M. Best Rating
Action Press Releases
.

A.M. Best is a global rating agency and information provider with a
unique focus on the insurance industry. Visit
www.ambest.com
for more information
.

Copyright © 2018 by A.M. Best Rating Services, Inc. and/or its
affiliates. ALL RIGHTS RESERVED.

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