Press Release - MAY 31, 2017
A.M. Best Upgrades Credit Ratings of Builders Insurance (A Mutual Captive Company) and Its Subsidiaries
FOR IMMEDIATE RELEASE
OLDWICK - MAY 31, 2017
The rating upgrades reflect Builders’ strong risk-adjusted capitalization, profitable operating performance, generally favorable loss reserve development trends and established market presence providing workers’ compensation and general liability coverage, primarily to the home-building industry in Georgia and other states from the Mid-Atlantic through the South, Midwest and West. Additionally, the ratings reflect the group’s prudent risk selection process, effective loss control practices and proactive claims management, which contribute to historically strong business retention. These positive rating factors are partially offset by Builders’ relatively limited product line spread and concentration of business in the building industry, particularly in states where the home building downturn was most pronounced during the last recession.
The outlooks are based on the group’s strong capitalization and the expectation of organic surplus growth through profitable operations over the near term. Future positive rating actions could occur if continued strength in operating earnings and return measures are sustained over a period of time. However, negative rating actions could result if there is a sustained weakening of operating performance relative to peers.
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