After a period of uncertainty, Pie Insurance Group is once again on solid financial ground. AM Best has officially removed the “under review with negative implications” status and affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of “a-” (Excellent) for both The Pie Insurance Company and its affiliate, Pie Casualty Insurance Company. Together, these entities operate under the Pie Insurance Group umbrella.
Why the Ratings Were Under Review
In March 2024, AM Best placed Pie’s ratings under review due to significant underwriting losses from its New York book of business in 2023. The root cause was adverse reserve development, a situation where previously set reserves were found insufficient. This created a ripple of concern over the company’s financial stability.
However, by the third quarter of 2023, Pie Insurance had taken decisive action to stabilize its reserves and reduce risk exposure through a strategic commutation. This move allowed the company to reshape its balance sheet and set the stage for a stronger financial position going forward.
Capital Strength and Profitability on the Rise
Following its reassessment, AM Best determined that Pie’s risk-adjusted capitalization at year-end 2024, measured by the Best’s Capital Adequacy Ratio (BCAR), was at the strongest level—a status expected to hold steady over the next few years.
The group has also demonstrated solid liquidity and achieved profitability in fiscal-year 2024, a significant milestone for a company still navigating the complexities of its startup phase. AM Best noted these improvements in assigning a stable outlook to Pie’s credit ratings.
What Comes Next for Pie Insurance
While AM Best acknowledges the inherent execution risks faced by emerging insurers, the outlook for Pie Insurance Group is cautiously optimistic. With stronger capital reserves, stable liquidity, and a return to profitability, the company is well-positioned to meet its business plan targets.
Ongoing monitoring will ensure Pie continues to align with its stated goals, but for now, the affirmation of its credit ratings marks a positive step forward. This renewed confidence from AM Best reflects Pie’s commitment to financial health, strategic risk management, and long-term sustainability.
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