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FOR IMMEDIATE RELEASE
OLDWICK - SEPTEMBER 20, 2022 03:19 PM (EDT)
AM Best has upgraded the Financial Strength Rating to A (Excellent) from A- (Excellent) and the Long-Term Issuer Credit Rating to “a” (Excellent) from “a-” (Excellent) of Ardellis Insurance Ltd. (Ardellis) (Bermuda). The outlook of these Credit Ratings (ratings) has been revised to stable from positive.
These ratings reflect Ardellis’ balance sheet strength, which AM Best assesses as very strong, as well as its strong operating performance, limited business profile and appropriate enterprise risk management (ERM).
Ardellis’ ultimate parent is UFP Industries, Inc. Ardellis provides reimbursement coverage for workers’ compensation, medical stop-loss, general liability, auto liability, auto physical damage, property and trade receivable to its parent. In addition, Ardellis assumes medical stop-loss exposure from third parties. In several of the last five years, Ardellis experienced rapid growth in third party business; however, this growth has substantially moderated and currently the third party medical stop-loss business represents approximately half of the company’s premiums.
The rating upgrades reflect Ardellis’ strong operating performance, with loss and expense ratio metrics consistently outperforming the general property/casualty industry. Ardellis’ low expense ratios reflect the company’s low overhead and its favorable loss ratios are attributable to its conservative underwriting philosophy and expertise. Further, the company’s loss control program and safety practices have resulted in both the affiliated and third party business remaining profitable over consecutive years.
Ardellis’ balance sheet strength remains very strong, supported by the strongest level of risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR). AM Best considers the company’s ERM framework and risk management capabilities appropriate for its risk profile. Further, Ardellis benefits from being an integral part of its ultimate parent’s ERM framework.
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 use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.
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.