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FOR IMMEDIATE RELEASE
OLDWICK - MARCH 03, 2020 09:16 AM (EST)
AM Best has assigned a Financial Strength Rating of A- (Excellent) and a Long-Term Issuer Credit Rating of “a-” to AMERIND Risk Management Corporation (AMERIND) (Pueblo of Santa Ana, New Mexico). The outlook assigned to these Credit Ratings (ratings) is stable.
The ratings reflect AMERIND’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.
AMERIND is a 100% tribally owned corporation and is the only insurer that is a multi-tribal Section 17 corporation, incorporated by Congress and subject to federal regulation. The company provides property, liability, automobile, and workers’ compensation insurance for a relatively small and under-served niche marketplace of tribes, tribal governments and tribal businesses, as well as individual property coverage for tribal members. The company has significant brand recognition among the residents and leaders in tribal communities and, accordingly, enjoys a distinctive advantage when soliciting and recruiting new tribal entities for business.
AMERIND maintains a very strong balance sheet. Current leadership has been in place since 2012, during which time, the company has grown surplus organically to approximately $88 million from $23 million, predominantly through underwriting profitability. The company benefits from its private ownership and federal and state tax-exempt status, with reserves held above actuarial estimates that strongly support the balance sheet.
AMERIND’s historical and prospective underwriting results are aligned appropriately with operating performance assessments of similarly rated peers. The company’s strong operating performance is reflected in its loss ratios, which have been favorable across all lines of business. Following the implementation of its new underwriting system, AM Best expects AMERIND’s expense ratios to improve. The company has flexibility in pricing and terms and conditions similar to a non-admitted insurer. Retentions are low and manageable.
The stable outlooks reflect AM Best’s expectation that the company will continue to generate strong operating performance; building its surplus and very strong, conservative balance sheet.
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.