AM Best


A.M. Best Affirms Ratings of Ardellis Insurance Ltd.


CONTACTS:

Janet Hernandez
Senior Financial Analyst
(908) 439-2200, ext. 5767
janet.hernandez@ambest.com

Steven Chirico, CPA
Assistant Vice President
(908) 439-2200, ext. 5087
steven.chirico@ambest.com
Christopher Sharkey
Manager, Public Relations
(908) 439-2200, ext. 5159
christopher.sharkey@ambest.com

Jim Peavy
Assistant Vice President, Public Relations
(908) 439-2200, ext. 5644
james.peavy@ambest.com

FOR IMMEDIATE RELEASE

OLDWICK - JUNE 11, 2015 03:22 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 both ratings is stable.

The ratings of Ardellis reflect its conservative underwriting leverage, strong level of capitalization and profitable operating results driven by its excellent underwriting performance.

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. (UFP). Ardellis provides 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. The company has posted low loss and loss adjustment expense ratios, reflecting UFP's effective risk management.

The ratings also recognize Ardellis' balance sheet strength and conservative underwriting leverage measures.

Although the outlook for the ratings is stable and not expected to be revised within the next 12-24 months, factors that could lead to a positive outlook and/or an upgrading of Ardellis' ratings are material and sustained improvements in its underwriting performance and capitalization. Factors that could lead to a negative outlook or a downgrading of the ratings are material deterioration of capital from the company's claims or investments, or a reduced level of capital that does not support its ratings as measured by Best's Capital Adequacy Ratio (BCAR).

A.M. Best remains the leading rating agency of alternative risk transfer entities, with more than 200 such vehicles rated in the United States and throughout the world. For current Best's Credit Ratings and independent data on the captive and alternative risk transfer insurance market, please visit www.ambest.com/captive.

The methodology used in determining these ratings is Best's Credit Rating Methodology, which provides a comprehensive explanation of A.M. Best's rating process and contains the different rating criteria employed in the rating process. Best's Credit Rating Methodology can be found at www.ambest.com/ratings/methodology .

Key insurance criteria reports utilized:


  • Alternative Risk Transfer

  • Catastrophe Analysis in A.M. Best Ratings

  • Evaluating Non-Insurance Ultimate Parents

  • Evaluating Country Risk

  • Risk Management and the Rating Process for Insurance Companies

  • The Treatment of Terrorism Risk in the Rating Evaluation

  • Understanding Universal BCAR

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 visit A.M. Best's Ratings & Criteria Center.

A.M. Best Company is the world's oldest and most authoritative insurance rating and information source.


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AMB# Company Name
075126 Ardellis Insurance Ltd.
031869 UFP Industries, Inc.