AM Best Revises Issuer Credit Rating Outlook to Positive for Members of HAI Group
OLDWICK, N.J.--(BUSINESS WIRE)--Nov 13, 2019--
AM Best has revised the outlook to positive from stable for the Long-Term Issuer Credit Rating (Long-Term ICR) and affirmed the Financial Strength Rating (FSR) of A (Excellent) and Long-Term ICR of “a” of the insurance entities of HAI Group. The outlook of the FSR remains stable. (See below for a detailed listing of the entities.)
The ratings reflect HAI Group’s balance sheet strength, which AM Best categorizes as strongest, as well as its marginal operating performance, favorable business profile and appropriate enterprise risk management (ERM).
The revision in the Long-Term ICR outlook to positive is based on HAI Group’s improved operating performance in recent years, driven primarily by favorable loss experience and deliberate expense management, which has led to a return to profitability and surplus growth. The favorable earnings trend is attributed mainly to strong senior leadership, improved underwriting, stricter underwriting and claims handling, stringent risk management practices and favorable reserve development. In addition, HAI Group’s pre-tax return measures exceed the industry.
The ratings also recognize HAI Group’s strongest level of risk-adjusted capitalization, strong liquidity, conservative investment portfolio, and comprehensive reinsurance program that protects policyholder surplus from volatility in results. The group’s business profile continues to be favorable with a positive niche market position, as well as good geographic and product spread of risk as a family of companies that serves the public and affordable housing community with insurance programs designed specifically for this segment of the housing market. ERM continues to be appropriate as the group expands risk management practices to mitigate risks to its members.
The positive Long-Term ICR outlook also reflects AM Best’s expectation that HAI Group’s operating performance will continue its upward trajectory while maintaining its balance sheet strength assessment level of strongest and favorable niche business profile without divergence from its risk profile in the near term.
The FSR of A (Excellent) and the Long-Term ICRs of “a” have been affirmed, with the Long-Term ICR outlook revised to positive from stable and the FSR outlook maintained at stable for the insurance entities of HAI Group:
- Housing Authority Property Insurance, A Mutual Company
- Housing Authority Risk Retention Group, Inc.
- Housing Enterprise Insurance Company, Inc.
- Housing Specialty Insurance Company, Inc.
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 credit rating agency, news publisher and data provider specializing in the insurance industry. The company does business in more than 100 countries. Headquartered in Oldwick, NJ, AM Best has offices in cities around the world, including London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.
Copyright © 2019 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.
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KEYWORD: NEW JERSEY EUROPE UNITED STATES NORTH AMERICA
INDUSTRY KEYWORD: PROFESSIONAL SERVICES INSURANCE FINANCE
SOURCE: AM Best
Copyright Business Wire 2019.
PUB: 11/13/2019 01:24 PM/DISC: 11/13/2019 01:24 PM