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AM Best Affirms Credit Ratings of Protective Property & Casualty Insurance Company
PRESS RELEASES - May 25, 2021

OLDWICK, N.J.--(BUSINESS WIRE)--AM Best has affirmed the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Rating of “a” (Excellent) of Protective Property & Casualty Insurance Company (Protective P&C) (St. Louis, MO). The outlook of these Credit Ratings (ratings) is stable.

The ratings reflect Protective P&C’s balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management (ERM). The ratings also reflect rating lift from its parent, Protective Life Insurance Company (Protective Life).

AM Best’s balance sheet strength assessment is based on the strongest level of risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), good asset quality, adequate balance sheet liquidity and yearly organic surplus growth derived from retained earnings, partially offset by annual dividends to the parent. The balance sheet strength is somewhat diminished by Protective P&C’s extensive use of unrated dealer-owned reinsurance arrangements. AM Best considers the company’s operating performance to be adequate based on its consistent track record of profitability, with return metrics and underwriting ratios that remain on par with its composite peer group of warranty insurers.

Protective P&C specializes in providing coverage for vehicle service contracts and guaranteed asset protection products for automobiles, marine craft, power sport vehicles and recreational vehicles, sold primarily through franchise dealers and independent agents. The neutral business profile reflects the company’s concentration of underwriting risk in the highly competitive auto warranty market, offset by geographic diversification. The company’s ERM is appropriate for its risk profile and is integrated with that of its parent, Protective Life.

Rating enhancement has been afforded to Protective P&C due to the implied support from its higher-rated parent, its integration into the organization and its support of the organization’s asset protection strategy.

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 media use of Best’s Credit Ratings and AM Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and AM Best Rating Action Press Releases.

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

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Edward Zonenberg

Senior Financial Analyst

+1 908 439 2200, ext. 5135


Christopher Sharkey

Manager, Public Relations

+1 908 439 2200, ext. 5159


Sharon Marks

Associate Director

+1 908 439 2200, ext. 5477


Jim Peavy

Director, Communications

+1 908 439 2200, ext. 5644