A.M. Best Co.
has affirmed the financial strength rating of B++ (Good) and issuer credit rating of “bbb” of
Pathfinder Insurance Company
(Pathfinder) (Denver, CO). Concurrently, A.M. Best has withdrawn the ratings at the company’s request to no longer participate in A.M. Best’s interactive rating process.
The ratings reflect Pathfinder’s strong capitalization, as reflected in its high Best’s Capital Adequacy Ratio (BCAR), and its historically high profitability. Pathfinder is authorized to do business in 43 states and the District of Columbia. Pathfinder does not write insurance policies for the general public. Rather, it is a vehicle used by its ultimate parent,
Avis Budget Group, Inc.
(ABG) [NASDAQ: CAR], to assure that to the extent possible, ABG maintains uninterrupted third party liability insurance on its automobiles that are registered in jurisdictions in which Pathfinder operates.
Partially offsetting these positive rating factors are Pathfinder’s limited scope of business and its dependence on ABG for business generation. Pathfinder continues to have minimal losses due to the structure of coverage provided by ABG and its strict risk management program.
The ratings also consider Pathfinder’s strategic value in providing automobile liability insurance for a portion of ABG’s corporately owned rental fleets. The ratings also recognize the overall financial and credit ratings of ABG.
A.M. Best remains the leading rating agency of alternative risk transfer entities, with more than 200 such vehicles rated in the United States and throughout the world.
For current Best’s Ratings and independent data on the captive and alternative insurance market, please visit
The methodology used in determining these ratings is Best’s Credit Rating Methodology, which provides a comprehensive explanation of A.M. Best’s rating process and contains the different rating criteria employed in the rating process. Key criteria utilized include: “Risk Management and the Rating Process for Insurance Companies”; “Understanding BCAR for Property/Casualty Insurers”; and “Alternative Risk Transfer (ART).” Best’s Credit Rating Methodology can be found at
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