AM Best Affirms Credit Ratings Of Ardellis
AM 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 [ratings] is stable.
The ratings agency said, “The ratings reflect Ardellis’ balance sheet strength, which AM Best categorizes as very strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management.
“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, and this business is fast-growing. Currently, approximately half of Ardellis’ premiums come from its parent. 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 or outlooks.”
