Best’s News & Research Service - December 04, 2020 11:58 AM (EST)
AM Best Upgrades Issuer Credit Rating for Members of HAI Group
- December 04, 2020 11:58 AM (EST)
Oldwick //BestWire// - AM Best has upgraded the Long-Term Issuer Credit Rating (Long-Term ICR) to “a+” from “a” and affirmed the Financial Strength Rating (FSR) of A (Excellent) of the insurance entities of HAI Group (Colchester, VT). The outlook of the Long-Term ICR has been revised to stable from positive while the FSR is stable. (See below for a detailed listing of the entities.)
These Credit Ratings (ratings) reflect HAI Group’s balance sheet strength, which AM Best categorizes as strongest, as well as its adequate operating performance, favorable business profile and appropriate enterprise risk management (ERM).
The upgrade of the Long-Term ICR is the result of favorable trends in operating results in recent years with underwriting and operating ratios that are more in line with its peers. The favorable earnings trend is attributed mainly to the group’s favorable loss experience, improved risk selection and the deliberate expense management initiatives implemented by senior leadership. Results have benefited over the past few years from management’s concerted efforts to improve operating performance through allocating resources to the group’s core insurance operations in order to achieve healthy, but stable premium growth. Combined with strict underwriting discipline and sound risk management practices, these aspects have led to the group’s recent enhanced profitability and sustained operating profitability.
The ratings also recognize HAI Group’s strongest level of risk-adjusted capitalization, conservative reserving practices, strong liquidity, high quality investments and a comprehensive reinsurance program that protects policyholder surplus from unexpected volatility. The group’s business profile continues to be viewed as favorable given its niche position as a market leader in the public housing sector, as well as its extensive geographic footprint and product offerings, its recognition among the 3,400 housing authorities across the United States, and its loss prevention programs that are specifically tailored for the public and affordable housing market. The group’s ERM practices continue to be appropriate and have been expanded to minimize exposure to events that could result in extraordinary losses to the company and its insureds.
The Long-Term ICRs have been upgraded to “a+” from “a” and the FSR of A (Excellent) affirmed, with the Long-Term ICR outlook revised to stable from positive and the FSR outlook maintained at stable for the insurance entities of HAI Group:
- Housing Authority Property Insurance, A Mutual Company
- Housing Authority Risk Retention Group, Inc.
- Housing Enterprise Insurance Company, Inc.
- Housing Specialty Insurance Company, Inc.
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.