AM Best upgrades HAI Group’s ratings to A+
AM Best has upgraded the financial strength rating (FSR) to A+ from A and the long-term issuer credit ratings (Long-Term ICR) to “aa-” (Superior) from “a+” (Excellent) of the insurance members of HAI Group (Cheshire, CT). The outlook of these ratings has been revised to stable from positive.
AM Best said that the ratings reflect HAI Group’s balance sheet strength, which AM Best assesses as strongest, as well as its strong operating performance, favourable business profile and appropriate enterprise risk management (ERM).
The rating upgrades reflect HAI Group’s sustained improvement in underwriting results and high level of operating profitability relative to similarly assessed peers. The strong operating performance assessment has been enhanced further by robust levels of net investment income that exceed the industry average. The group’s underwriting results began showing marked improvement in 2017 following a change in executive leadership, and since then have generated strong results consistently. This positive trend in underwriting and operating profitability is supported by stable premium growth driven by targeted rate actions and favourable increases in total insured value, disciplined expense management, and consistently favourable loss development year after year. Management maintains a disciplined underwriting approach and is highly selective in new business submissions, which has enhanced the overall quality of risks assumed in its portfolio.
AM Best said that: “The consistent earnings generation has driven a healthy amount of organic surplus growth over the previous five-year period, which has reinforced the group’s capital position and overall balance sheet strength. The group’s favourable business profile is anchored by its leading market position in the public housing sector and expanding presence in the larger affordable housing sector. Currently, the majority of new business growth originates from the affordable housing sector, which provides a significant opportunity for expansion in the years ahead. Further, the group benefits from exceptionally strong client retention and brand loyalty within the assisted housing market. The group has an established ERM framework in place that further demonstrates the group’s proactive risk management approach and clear governance across its organisation.”
The FSR has been upgraded to A+ (Superior) from A (Excellent) and the Long-Term ICRs to “aa-” (Superior) from “a+” (Excellent) with the outlooks revised to stable from positive for the following members of HAI Group:
• Housing Authority Risk Retention Group
• Housing Enterprise Insurance Company
• Housing Specialty Insurance Company
“This upgrade reflects the hard work, focus, and discipline of our entire organisation,” said Ed Malaspina, president and CEO of HAI Group. “Our team's commitment to excellence has brought us here, and this recognition shows that the work we've put in is paying off. HAI Group was founded by public housing agencies during a time when it was difficult to secure affordable, reliable coverage, and these upgrades are proof that we remain strong and ready to continue delivering on that mission well into the future.”
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