AM Best revises outlook on CargoCorp’s PA-3 to positive

By Chris Munro

July 17 - (The Insurer) - The outlook on CargoCorp Underwriters’ PA-3 (Strong) performance assessment has been revised to positive from stable by AM Best on the back of the Miami-headquartered MGA’s strong underwriting capabilities and “excellent governance and internal controls.”

In a statement issued late on Thursday, AM Best said the revised outlook to positive reflects its expectation that CargoCorp will continue to effectively execute its business strategy as the MGA broadens its underwriting portfolio, expands its geographic footprint, enhances its organizational capabilities and deepens its network of relationships.

Alongside the outlook revision, AM Best also affirmed CargoCorp’s performance assessment of PA-3.

As well as its strong underwriting and governance and internal controls, AM Best highlighted CargoCorp’s strong financial condition and organizational talent along with its depth and breadth of relationships as supporting its PA-3 assessment.

“Since launching its first program in 2015, (CargoCorp) has demonstrated its underwriting expertise by generating profitable business for its carrier partners,” AM Best said.

“Its capabilities are further enhanced by an internal, proprietary software system that delivers detailed risk assessments and exposure monitoring.

“Premium growth over the years has been driven by the expansion of existing programs and entry into new lines of business,” the agency added.

AM Best said CargoCorp’s governance and internal controls “are considered excellent given the company’s size and scale.”

The marine underwriting specialist has developed and implemented a robust internal audit process, while its governance framework continues to evolve annually.

AM Best also highlighted how CargoCorp’s proprietary technology platform is continually enhanced as the Juan Carlos Martinez-led MGA expands its information technology team and leverages growing data resources.

The MGA’s “strong financial condition” is backed by what AM Best said is its “trend of consistently profitable earnings,” as well as strong cash flow results and increasing positive net worth.

As AM Best noted, CargoCorp’s programs portfolio “has evolved significantly since its founding.”

CargoCorp offers a range of programs across several business lines, with much of its underwriting focused on Latin America.

“(CargoCorp) has broadened its network of capacity providers and brokers and expanded its geographic footprint in recent years,” AM Best said.

“Management remains focused on identifying growth opportunities in new markets while maintaining longstanding relationships with highly rated capacity providers,” it added.