Best places Pie’s A- rating under review

Rating agency A.M. Best Co. Inc. on Friday said it has placed Pie Insurance Group’s A- financial strength rating “under review with negative implications.” 

Pie’s 2023 results included “material underwriting losses brought on by adverse reserve development in its New York book of business,” Oldwick, New Jersey-based Best said in a statement. Pie, an insurtech company formed in 2017 that mostly provides workers compensation coverage for small businesses, received its A- in February 2023.

“Although reserves have stabilized since third-quarter 2023, the magnitude of the development is concerning and has had an adverse impact on Pie’s risk-adjusted capital position,” Best said.

Pie’s ratings will remain under review until “strategic initiatives” have been executed, Best said.

Officials at Pie could not immediately be reached for comment.