Pacific International Insurance Pty Limited (Pacific) has maintained a stable outlook, with AM Best assessing the company’s balance sheet strength as adequate and its risk-adjusted capitalisation as strong as of June 30. The credit rating agency forecasts that Pacific’s capital position will remain robust in the medium term, contingent on the successful execution of its business plan and projected capital generation.
While the company relies heavily on reinsurance, the high quality of its reinsurance panel serves to mitigate associated risks, according to AM Best. The agency also highlighted Pacific’s operating performance, noting an improving trend over the past five years. For fiscal year 2024, Pacific reported a pre-tax profit of A$13.6 million, up from A$4.3 million in 2023, and achieved a combined ratio of 94.5%.
Investment income continues to provide stable support to Pacific’s earnings. AM Best anticipates that the company’s financial performance will remain consistent with its current adequate rating.
Despite recent premium growth, Pacific’s business profile remains limited. A significant portion of its premiums is ceded to reinsurers, and its retained portfolio mainly consists of motor, pet, and travel insurance, along with a motor novated lease partnership. However, the company is expected to maintain elevated net underwriting growth in the medium term.
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