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FOR IMMEDIATE RELEASE
OLDWICK - SEPTEMBER 25, 2020 02:05 PM (EDT)
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 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 UFP Industries, 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 has grown significantly in the past few years: however, the growth has slowed somewhat in 2020. Currently, approximately 40% of Ardellis’ net written premium represents related premiums from its parent.
Ardellis’ underwriting and overall operating performance remains profitable through year-end 2019 and the first half of 2020. If the current level of operating performance is sustained post COVID-19 pandemic, the ratings and/or rating outlooks could be revised upward. Any significant deterioration in operating performance or significant erosion in risk-adjusted capitalization could result in downward pressure on the ratings or outlooks.
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 New York, London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City.