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FOR IMMEDIATE RELEASE
OLDWICK - SEPTEMBER 28, 2021 02:08 PM (EDT)
AM Best has revised the outlook to positive from stable for the Long-Term Issuer Credit Rating (Long-Term ICR) and affirmed the Financial Strength Rating (FSR) of A (Excellent) and the Long-Term ICR of “a” (Excellent) of Restoration Risk Retention Group, Inc. (RRRG) (Burlington, VT). The outlook of the FSR is stable.
The Credit Ratings (ratings) reflect RRRG’s 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.
The positive Long-Term ICR outlook reflects RRRG’s distinct improvement in its underwriting results and overall operating performance since transitioning its third-party service providers in 2014. With the integration of the new service providers, RRRG has clearly focused its specialty, niche insurer expertise on improving its claims management and resolution practices. Loss-adjustment expenses have declined significantly over the past five years due to improvement in claims management and litigation strategies. The steps taken by management have improved underwriting profitability significantly, and AM Best anticipates this to continue without material deviation.
The ratings reflect management’s prudent risk management philosophy and RRRG’s very strong balance sheet that is supported by its solid future earnings prospects and a conservative reserving approach. RRRG also has reduced its balance sheet exposure to equity market volatility in recent years, thereby enhancing its risk-adjusted capitalization.
RRRG conducts business in all 50 states through more than 1,700 independent Servpro franchisees, and its partnership with Servpro Industries in providing best practices training and loss prevention tactics to those Servpro franchisees that RRRG insures.
AM 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.
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 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.