News Column

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

May 22, 2014



OLDWICK, N.J.--(BUSINESS WIRE)-- A.M. Besthas affirmed the financial strength rating of A- (Excellent) and the issuer credit rating of ďa-Ē 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 Ardellisí 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, workersí 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 Ardellisí 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 Ardellisí 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 companyís claims, investments and/or a reduced level of capital that does not support its ratings as measured by Bestís 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 Bestís 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 Bestís Credit Rating Methodology, which provides a comprehensive explanation of A.M. Bestís rating process and contains the different rating criteria employed in the rating process. Bestís 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.





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

Source: A.M. Best Company, Inc.


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