A.M. Best Affirms Ratings of Ardellis Ltd.
A.M. Best Co.has affirmed the financial strength rating of A- (Excellent) and issuer credit rating of “a-” of Ardellis Insurance Ltd. (Ardellis) (Bermuda). The outlook for both ratings is stable.
The ratings of Ardellis reflect its conservative underwriting leverage, strong level of capitalization and profitable operating results driven by its excellent underwriting performance.
Partially offsetting these positive rating factors are Ardellis’ relatively high retention and limited profile as a single parent captive of Universal Forest Products Inc. (UFP). Ardellis provides coverage for general liability, auto liability, workers’ compensation, property and certain employee health benefits.
Ardellis has maintained very conservative underwriting leverage ratios as surplus has remained strong to support its business volume. The company has posted low loss and loss adjustment expense ratios, reflecting UFP’s effective risk management. The ratings also recognize Ardellis’ balance sheet strength and conservative underwriting leverage measures.
Rating drivers that could lead to a positive outlook or an upgrading of Ardellis’ ratings are material and sustained improvement in its underwriting performance and capitalization. Additionally, improved overall risk management and reduced overall net exposure could lead to an upgrade.
