A.M. Best has affirmed Financial Strength Rating of A (Excellent) and Long-Term Issuer Credit Rating of "a" of Park Assurance Company (Park) (Burlington, VT). The outlook of these Credit Ratings (ratings) is stable. The ratings reflect Park's excellent risk-adjusted capitalization, operating performance, liquidity position, sophisticated risk management strategy and practices, conservative investment strategy, its management team's extended experience in the industry and its role as a single-parent captive of JPMorgan Chase & Co. (JPMorgan Chase)(NYSE:JPM), a leading global financial services group. Partially offsetting these positive rating factors are Park's large gross underwriting risk appetite and the potential credit risk associated with its extensive use of reinsurance, which management utilizes to mitigate these one-off risks. As a single-parent captive, Park provides JPMorgan Chase with very high insurance limits and insures some properties with substantial insured values. Park provides JPMorgan Chase with global property coverages, including terrorism, as well as workers' compensation, auto liability and general liability. Therefore, these coverages are key components of JPMorgan Chase's risk management strategy, and Park benefits from the group's significant financial resources. JPMorgan Chase also benefits from the group's extensive risk mitigation and safety programs. As Park reinsures a large portion of its global property program, its exposure to underwriting losses is minimal, barring significant losses from terrorism. Management only uses well-rated reinsurers, and Park's surplus base is more than adequate to support its asset and credit risk exposures. However, as Park offers very high limits, its resulting gross underwriting exposures on its largest properties are high relative to surplus. Its dependence on reinsurance is therefore substantial, creating considerable credit risk in the event of exceptionally large losses. In addition, Park remains dependent on the protection afforded by the Terrorism Risk Insurance Program Reauthorization Act of 2015 (TRIPRA), and while the TRIPRA program offers significant protection from terrorism losses, the net impact on Park could still be burdensome. Nevertheless, A.M. Best recognizes the low probability of such extreme events and the support available to Park as a single-parent captive of JPMorgan Chase.