AM Best revises Apex RRG rating outlook to negative
AM Best has revised the outlooks to negative from stable and affirmed the financial strength rating of A- (Excellent) and the long-term issuer credit rating of “a-” (Excellent) of Apex Insurance Risk Retention Group Inc.
Apex is domiciled in Vermont which covers general liability exposures in North America, including coverages for professional liability, physical and sexual misconduct, and personal and advertising injury, for its parent, Bright Horizons Family Solutions Inc. and its subsidiaries and affiliated companies.
Bright Horizons is a leading global provider of high-quality early education and childcare, back-up care, and workforce education services, serving more than 1,450 of the world’s leading employers.
The ratings reflect Apex’s balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management.
AM Best said the negative outlooks reflect the volatility and deterioration in Apex’s operating performance in 2025 and the first half of 2026, resulting in performance measures that are beginning to fall below the levels expected of its “adequate” assessment level. Earnings volatility is another concern.
Despite these concerns, AM Best expects Apex’s balance sheet strength assessment to remain at the very strong level and business prospects continue to be favourable as it relates to the company’s role as an insurer, its strategic importance to Bright Horizons and the financial flexibility afforded to it.
AM Best’s expects that Apex will execute its future business strategy and will continue to benefit from the implicit and explicit support of Bright Horizons given Apex’s level of integration within the enterprise and its strategic importance to the organisation as an effective alternative risk transfer vehicle.
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