The ratings agency also upgraded the captive’s long-term Issuer credit ratings to “a” from “a-”.
According to A.M. Best, the upgrade reflects the captive’s strong risk-adjusted capitalisation, profitable operating performance, and favourable loss reserve development trends.
A.M. Best also recognised its 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”.
A.M. Best said: “The positive rating factors are partially offset by the company’s 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.”