AM Best Upgrades Credit Ratings of Restoration Risk Retention Group, Incorporated
OLDWICK, N.J.--(BUSINESS WIRE)--Sep 12, 2019--
AM Best has upgraded the Financial Strength Rating to A (Excellent) from A- (Excellent) and the Long-Term Issuer Credit Rating to “a” from “a-” of Restoration Risk Retention Group, Incorporated (RRRG) (Burlington, VT). The outlook of these Credit Ratings (ratings) has been revised to stable from positive.
The ratings reflect RRRG’s balance sheet strength, which AM Best categorizes as very strong, as well as its strong operating performance, limited business profile and appropriate enterprise risk management.
The rating upgrades reflect RRRG’s sustained improvement in its operating performance, which compares favorably with the industry averages, despite the inherent challenges that come along with being a mono-line specialty, niche insurer. RRRG uses its quasi-captive position for ready access to more than 1,700 independent Servpro franchisees in all 50 states, and its partnership with its sponsor, Servpro Industries, Inc., in providing best practices training and loss prevention tactics to those Servpro franchisees that RRRG insures. The company has reduced its loss volatility in recent years through improvements in claims management and litigation strategies, resulting annually in favorable reserve development. The steps taken by management have improved underwriting profitability significantly, which AM Best anticipates should continue without material deviation.
The ratings also reflect management’s prudent risk management philosophy and RRRG’s very strong balance sheet that is supported by its solid future earnings prospects, letters of credit provided by Servpro and a conservative reserving approach. RRRG management has taken additional action in recent years to reduce balance sheet exposure to equity market volatility.
AM 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.
This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Understanding Best’s Credit Ratings. For information on the proper media use of Best’s Credit Ratings and AM Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and AM Best Rating Action Press Releases.
AM Best is a global rating agency and information provider with a unique focus on the insurance industry. Visit www.ambest.com for more information.
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CONTACT: Kourtnie Beckwith
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KEYWORD: VERMONT NEW JERSEY EUROPE UNITED STATES NORTH AMERICA
INDUSTRY KEYWORD: INSURANCE PROFESSIONAL SERVICES
SOURCE: AM Best
Copyright Business Wire 2019.
PUB: 09/12/2019 01:40 PM/DISC: 09/12/2019 01:40 PM