OLDWICK, N.J.--(BUSINESS WIRE)--AM Best has affirmed the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Rating of “a” (Excellent) of Ardellis Insurance Ltd. (Ardellis) (Bermuda). The outlook of these Credit Ratings (ratings) is stable.
The ratings reflect Ardellis’ 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 (ERM).
Ardellis is a wholly owned subsidiary of UFP Industries, Inc., and provides reimbursement coverage for medical stop-loss, workers’ compensation, general liability, automobile physical damage liability, property and trade credit receivables to its parent and its subsidiaries. In addition, Ardellis provides coverages for medical stop-loss, excess property and excess general liability coverages for unrelated parties. Currently, approximately 54% of Ardellis’ premium represents third-party business.
Ardellis’ balance sheet strength remains very strong, supported by the strongest level of risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR). The company’s operating performance has been favorable, with loss and expense ratio metrics that, on average, have outperformed the general property/casualty industry driven by underwriting expertise, safety and loss control practices, as well as low overhead. AM Best considers Ardellis’ ERM framework and risk management capabilities appropriate for its risk profile. Furthermore, Ardellis benefits from being an integral part of its parent’s ERM framework.
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