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FOR IMMEDIATE RELEASE
OLDWICK - AUGUST 18, 2016 04:12 PM (EDT)
A.M. Best has affirmed the financial strength rating of A- (Excellent) and the issuer credit rating of “a-” of Ardellis Insurance Ltd. (Ardellis) (Bermuda). The outlook for each rating is stable.
The rating affirmations reflect Ardellis’ conservative underwriting leverage, strong risk-adjusted capitalization level and profitable operating results driven by its solid underwriting performance. The ratings also recognize Ardellis’ balance sheet strength and conservative underwriting leverage measures.
Partially offsetting these positive rating factors are Ardellis’ relatively high retention and limited profile. Ardellis is a wholly owned subsidiary of Universal Forest Products Inc. Ardellis provides reimbursement coverage for general liability, auto liability, workers’ compensation, property and medical stop loss. Ardellis also assumes medical stop loss exposure from third parties. Ardellis has maintained very conservative underwriting leverage ratios, as surplus has remained strong to support its business volume. In addition, the company has reported modest loss and loss adjustment expense ratios over the most recent five-year period, reflecting effective risk management.
Any significant deterioration in operating performance, significant erosion in risk-adjusted capitalization or rapid growth in premiums could result in downward movement in the ratings and/or outlooks.
This press release relates to rating(s) that have been published on A.M. 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 A.M. Best’s Recent Rating Activity web page.
A.M. Best is the world’s oldest and most authoritative insurance rating and information source.