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FOR IMMEDIATE RELEASE
OLDWICK - SEPTEMBER 22, 2021 10:45 AM (EDT)
AM Best has revised the outlooks to positive from stable and affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of “a-” (Excellent) of Ardellis Insurance Ltd. (Ardellis) (Bermuda).
These Credit Ratings (ratings) reflect Ardellis’ balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management (ERM).
Ardellis’ ultimate parent is UFP Industries, Inc. (UFP). Ardellis provides reimbursement coverage for workers’ compensation, medical stop-loss, general liability, auto liability and property to its parent. In addition, Ardellis assumes medical stop-loss exposure from third parties.
The revision of the outlooks to positive reflects Ardellis’ favorable operating performance, with loss and expense ratio metrics outperforming the general property/casualty industry over several years. The favorable loss ratios are attributable to Ardellis’ underwriting expertise and a consistent approach to loss control and safety practices. The low expense ratios reflect the company’s low overhead. Approximately 40% of the company’s net written premiums currently come from its parent and the remainder from third party medical stop-loss. Ardellis experienced rapid growth in its third party medical stop-loss business over several recent years; however, this growth has moderated more recently. Both the affiliated business and the third party business are currently profitable.
AM Best expects Ardellis’ balance sheet strength to remain very strong, supported by the strongest level of risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR). AM Best considers the company’s ERM framework and risk management capabilities appropriate for its risk profile. Further, Ardellis benefits from being an integral part of its ultimate parent’s ERM framework.
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.