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AM Best Revises Outlooks to Positive for Ardellis Insurance Ltd.

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ENPNewswire-September 23, 2021--AM Best Revises Outlooks to Positive for Ardellis Insurance Ltd

(C)2021 ENPublishing - http://www.enpublishing.co.uk

Release date- 22092021 - 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...

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