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

OLDWICK, N.J.--()--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 as a single parent captive of Universal Forest Products Inc. (UFP). Ardellis provides coverage for general liability, auto liability, workers’ compensation, property and medical stop loss. 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 its effective risk management practices.

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 improvement in its underwriting performance and capitalization. Factors that could lead to a negative outlook and/or a downgrading of the ratings are material deterioration of capital from the company’s claims, investments and/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.

A.M. Best Company is the world's oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com.

Copyright © 2014 by A.M. Best Company, Inc. ALL RIGHTS RESERVED.

Contacts

A.M. Best Company, Inc.
Janet Hernandez, 908-439-2200, ext. 5767
Senior Financial Analyst
janet.hernandez@ambest.com
or
Steven Chirico, CPA, 908-439-2200, ext. 5087
Assistant Vice President
steven.chirico@ambest.com
or
Rachelle Morrow, 908-439-2200, ext. 5378
Senior Manager, Public Relations
rachelle.morrow@ambest.com
or
Jim Peavy, 908-439-2200, ext. 5644
Assistant Vice President, Public Relations
james.peavy@ambest.com

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Contacts

A.M. Best Company, Inc.
Janet Hernandez, 908-439-2200, ext. 5767
Senior Financial Analyst
janet.hernandez@ambest.com
or
Steven Chirico, CPA, 908-439-2200, ext. 5087
Assistant Vice President
steven.chirico@ambest.com
or
Rachelle Morrow, 908-439-2200, ext. 5378
Senior Manager, Public Relations
rachelle.morrow@ambest.com
or
Jim Peavy, 908-439-2200, ext. 5644
Assistant Vice President, Public Relations
james.peavy@ambest.com