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FOR IMMEDIATE RELEASE
OLDWICK - APRIL 19, 2018 03:22 PM (EDT)
A.M. 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 Long-Term ICR of “a” of Builders Mutual Insurance Company and Builders Premier Insurance Company, collectively referred to as Builders Mutual Insurance Group (Builders Mutual) (Raleigh, NC). The outlook of the FSR remains stable.
The ratings reflect Builders Mutual’s balance sheet strength, which A.M. Best categorizes as strongest, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management.
The positive outlook reflects a trend of favorable underwriting performance that has consistently outperformed the composite on a five- and 10-year basis. Favorable results are attributable to the company’s ability to obtain and maintain preferred business, which is augmented by its solid reputation in key markets, leading to more profitable loss experience.
Positive rating pressures may materialize if continued strength in operating earnings and the resulting return on revenue measures are sustained and remain in excess of peers. Negative rating pressures could occur if there is a sustained weakening of operating performance relative to peers that results in a material impact on the capital strength of the company.
This press release relates to Credit Ratings 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. For additional information regarding the use and limitations of Credit Rating opinions, please view Understanding Best’s Credit Ratings. For information on the proper media use of Best’s Credit Ratings and A.M. Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and A.M. Best Rating Action Press Releases.
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