Oldwick, NJ -(BusinessWire)- A.M. Best has revised the outlook to positive from stable and affirmed the financial strength rating of A- (Excellent) and the issuer credit rating of “a-” of Builders Insurance (A Mutual Captive Company) and its wholly owned subsidiaries, American Builders Insurance Company (formerly known as Association Insurance Company) and National Builders Insurance Company (formerly known as Vinings Insurance Company), collectively referred to as Builders. All companies are headquartered in Atlanta, GA.
The ratings action reflects Builders’ strong risk-adjusted capitalization, historically profitable operating performance, generally favorable loss reserve development trends and established market presence providing workers’ compensation and general liability coverage, primarily to the home building industry in Georgia and other states ranging from the Mid-Atlantic to 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. These positive rating factors are partially offset by Builders’ relatively limited product line spread and concentration of business in the building industry, particularly in states where the home building downturn was most pronounced.
The outlook is based on the group’s strong capitalization and the expectation of organic surplus growth through profitable operations over the near term. Future positive rating actions may result if the group continues to generate consistent and profitable underwriting results for an extended period of time. However, negative rating actions could result if operating performance falls markedly short of A.M. Best’s expectation or if risk-adjusted capitalization declines significantly.