Pinnacle standing reflects sound principles

The ratings on UK-based composite insurer Pinnacle Insurance (Pinnacle) reflect the company's strong and consistent earnings record, robust capital adequacy, and stable and experienced management team.

These positive factors are offset by concentrations in Pinnacle's business profile, challenges associated with the volatility of investment bond sales, and legacy issues with the warranty account. The company is a subsidiary of Cardif S.A. (Cardif; not rated), and its ultimate parent is BNP