FEBRUARY 11, 2021 11:19 AM (EST)
AM Best Affirms Credit Ratings of ACMAT Corporation and ACSTAR Insurance Company
|Adrienne Stark |
Senior Financial Analyst
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Manager, Public Relations
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FOR IMMEDIATE RELEASE
OLDWICK - FEBRUARY 11, 2021 11:19 AM (EST)
AM Best has affirmed the Long-Term Issuer Credit Rating (Long-Term ICR) of “bbb” of ACMAT Corporation (ACMAT) (Farmington, CT) [OTC Market: ACMT]. Concurrently, AM Best has affirmed the Financial Strength Rating of A (Excellent) and the Long-Term ICR of “a” of ACMAT’s wholly owned subsidiary, ACSTAR Insurance Company (ACSTAR) (Chicago, IL). The outlook of these Credit Ratings (ratings) is stable.
The ratings reflect ACSTAR’s balance sheet strength, which AM Best categorizes as very strong, as well as its strong operating performance, limited business profile and appropriate enterprise risk management.
The ratings consider ACSTAR’s strongest level of risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), management’s extensive knowledge and experience in its niche specialty within the surety sector, coupled with a disciplined underwriting philosophy. Partially offsetting these positive rating factors is a decrease in net premiums written over several of the past five years due to highly competitive market conditions, which led to narrowed underwriting results in those years.
The stable outlooks reflect AM Best’s expectation that ACSTAR’s risk-adjusted capitalization will remain supportive and that its operating results will remain profitable in the near term.
This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best’s Credit Ratings. For information on the proper media use of Best’s Credit Ratings and AM Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and AM Best Rating Action Press Releases.
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.