A.M. Best Withdraws Ratings of Pathfinder Insurance Company

  A.M. Best Withdraws Ratings of Pathfinder Insurance Company

Business Wire

OLDWICK, N.J. -- December 07, 2012

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 Concurrently, A.M. Best has withdrawn the ratings at the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

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 www.ambest.com/captive.

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 www.ambest.com/ratings/methodology.

Founded in 1899, A.M. Best Company is the world's oldest and most
authoritative insurance rating and information source. For more information,
visit www.ambest.com.

       Copyright © 2012 by A.M. Best Company, Inc. ALL RIGHTS RESERVED.


A.M. Best Co.
Fred Eslami
Senior Financial Analyst
(908) 439-2200, ext. 5406
Steven Chirico, CPA
Assistant Vice President
(908) 439-2200, ext. 5087
Rachelle Morrow
Senior Manager, Public Relations
(908) 439-2200, ext. 5378
Jim Peavy
Assistant Vice President, Public Relations
(908) 439-2200, ext. 5644
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