AM Best has placed under review with negative implications the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Ratings 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).

This Credit Rating (rating) action follows the organization’s results in 2023, which included material underwriting losses brought on by adverse reserve development in its New York book of business. Although reserves have stabilized since third-quarter 2023, the magnitude of the development is concerning and has had an adverse impact on Pie’s risk-adjusted capital position.

Management is implementing strategic initiatives to address the decline in its risk-adjusted capital. The ratings will remain under review until these initiatives have been executed. The negative implications point to the fact that, should management fail to execute on these initiatives, the ratings could be negatively impacted.

AM Best will closely monitor the progress of these capital initiatives and their potential impact on Pie’s ratings.

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.

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.

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