AM Best reaffirms Ardellis Insurance with stable outlook

AM Best has affirmed the financial strength rating of A and the long-term issuer credit rating of “a” of Bermuda-registered Ardellis Insurance and given the ratings a stable outlook.

The company said that the ratings reflect Ardellis’ balance sheet strength, which AM Best assesses as very strong, as well as its strong operating performance, limited business profile and appropriate enterprise risk management (ERM).

Ardellis is a wholly owned subsidiary of UFP Industries, and provides reimbursement coverage for medical stop-loss, workers’ compensation, general liability, automobile physical damage liability, property and trade credit receivables to its parent and its subsidiaries. In addition, Ardellis provides medical stop-loss, excess property and excess general liability coverages for third parties. As of Dec. 31, 2024, approximately 57% of Ardellis’ premium represented unaffiliated business.

Ardellis’ balance sheet strength remains at the very strong level, supported by the strongest level of risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR). On a five- and 10-year average basis, Ardellis’ combined and operating ratios have outperformed the general property/casualty industry, driven by the company’s safety and loss control practices, management’s underwriting expertise and low overhead. AM Best considers Ardellis’ ERM framework and risk management capabilities appropriate for its risk profile. Additionally, Ardellis benefits from being an integral part of its parent’s ERM framework.

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