A.M. Best Affirms Credit Ratings Of Ardellis
A.M. Best has affirmed the Financial Strength Rating of A- [Excellent] and the Long-Term Issuer Credit Rating of “a-” of Ardellis Insurance Ltd. [Ardellis] [Bermuda]. The outlook of these Credit Ratings [rating] is stable.
A statement from the ratings agency said, “The rating affirmations reflect Ardellis’ balance sheet strength, conservative underwriting leverage and profitable operating results driven by its solid underwriting performance. Partially offsetting these positive rating factors is Ardellis’ limited profile.
“Ardellis is a wholly owned subsidiary of Universal Forest Products, Inc., and provides reimbursement coverage for general liability, auto liability, workers’ compensation, property and medical stop-loss to its parent. Ardellis also assumes medical stop-loss exposure from third parties.
“Ardellis maintains very conservative underwriting leverage ratios, as surplus remains strong to support its business volume. In addition, the company reported modest loss and loss adjustment expense ratios over the most recent five-year period, reflecting effective risk management.
“Any significant deterioration in operating performance, significant erosion in risk-adjusted capitalization or rapid growth in premiums could result in downward movement in the ratings and/or outlooks.”
