AM Best Affirms Performance Assessment of Cargo Risk Corporation

AM Best has affirmed the Performance Assessment (assessment) of PA-3 (Strong) of Cargo Risk Corporation (CargoCorp) (Miami, FL). The outlook of the assessment is stable.

The assessment reflects CargoCorp’s strong underwriting capabilities, strong governance and internal controls, strong financial condition, strong organizational talent and strong depth and breadth of relationships.

CargoCorp is a managing general agent (MGA) specializing in providing capacity for marine cargo lines in the Latin American market. Since writing its first program in 2015, CargoCorp has proven its underwriting expertise by producing profitable business for its carrier partners. CargoCorp’s underwriting capabilities further benefit from its experienced underwriting staff. Embedded in the underwriting process is use of an internal and proprietary software system that provides the company with extensively detailed assessments of risk for real-time feedback for insureds with potential exposures. The limited track record of several of its programs is considered a partially offsetting factor.

CargoCorp’s governance and internal controls are strong given its size and scale. CargoCorp has designed and implemented a robust internal audit process to ensure that the company’s policies and procedures are aligned with its strategic objectives. The company has an experienced board of directors that features internal and external members. Key person risk exists, but processes are in place to moderate the impact should an issue occur.

CargoCorp’s financial condition is supported by a trend of consistently profitable earnings and continued positive net worth. The company is privately held. Operations are oriented as a small business with hands-on management. Stability of income benefits from the range of programs underwritten by the company.

The company is staffed more than appropriately for its size and scale with extensive industry experience in marine cargo. Its organizational structure is compact for ease of communication and efficient work processes. Many processes are retained in-house to ensure consistency and provide flexibility. CargoCorp experienced elevated staff turnover this last year, a moderate offsetting factor to this component.

CargoCorp’s portfolio of programs has progressed since its founding. The company offers a range of programs in its target market of marine cargo and affiliated coverage in Latin America. Management continues to monitor growth opportunities in new markets, as well as maintain relationships with well-rated capacity providers.

This press release relates to Performance Assessments that have been published on AM Best’s website. For all information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the Performance Assessments referenced in this release, please see AM Best’s website. For additional information regarding the use and limitations of Performance Assessments, please view Guide to Best’s Performance Assessments for Delegated Underwriting Authority Enterprises. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

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