AM Best Revises Outlooks to Positive for Members of HAI Group

AM Best has revised the outlooks to positive from stable and affirmed the Financial Strength Rating (FSR) of A (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of “a+” (Excellent) of the insurance members of HAI Group (Cheshire, CT).

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Friday, October 20, 2023
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Banking, Professional Services, Insurance, Finance, AM Best, Housing, Public housing, Credit, News, AM, FSR, Risk management, ERM, Hay Group Global R&D Center for Strategy Execution, HAI, Long-Term Capital Management, ALL
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CONNECTICUT, NEW JERSEY, EUROPE, UNITED STATES, NORTH AMERICA, SINGAPORE, LONDON, CHESHIRE
Summary
Key Points: 
  • AM Best has revised the outlooks to positive from stable and affirmed the Financial Strength Rating (FSR) of A (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of “a+” (Excellent) of the insurance members of HAI Group (Cheshire, CT).
  • The revision of the outlooks to positive is driven by the group’s operating performance, which has shown sustained improvement in underwriting and operating profitability since 2017.
  • HAI Group has also been the beneficiary of high persistency, adherence to price adequacy, minimal volatility, favorable loss reserve development and disciplined expense management.
  • The FSR of A (Excellent) and the Long-Term ICRs of “a+” (Excellent) have been affirmed with the outlooks revised to positive from stable for the following members of HAI Group:
    Housing Authority Risk Retention Group, Inc.


AM Best has revised the outlooks to positive from stable and affirmed the Financial Strength Rating (FSR) of A (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of “a+” (Excellent) of the insurance members of HAI Group (Cheshire, CT). (See below for a detailed listing of the members and Credit Ratings [ratings].)

These ratings reflect HAI Group’s balance sheet strength, which AM Best assesses as strongest, as well as its adequate operating performance, favorable business profile and appropriate enterprise risk management (ERM).

The revision of the outlooks to positive is driven by the group’s operating performance, which has shown sustained improvement in underwriting and operating profitability since 2017. Under the current management team, which was appointed in that same year, the group has seen healthy growth in premiums (new and renewals), while keeping pace with inflationary pressures and rising total insured values. HAI Group has also been the beneficiary of high persistency, adherence to price adequacy, minimal volatility, favorable loss reserve development and disciplined expense management. The culmination of all of these factors have contributed to HAI Group’s ability to perform at levels more in line with its higher assessed peers over the last several years. Going forward, AM Best will continue to monitor the group’s upward trend in profitability and whether or not these results prove to be sustainable over the intermediate term.

HAI Group’s balance sheet assessment is well supported by its risk-adjusted capitalization, which is at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR). Additionally, the group maintains favorable levels of liquidity, low underwriting leverage and a low dependence on reinsurance that further solidifies its balance sheet strength. HAI Group’s favorable business profile benefits from its strong market position in the public housing sector, as well as further diversifies it into the broader affordable housing market. The group’s ERM is categorized as appropriate given the organization’s strong risk management capabilities, which supports the risk profile and the expanding complexity of HAI Group.

The FSR of A (Excellent) and the Long-Term ICRs of “a+” (Excellent) have been affirmed with the outlooks revised to positive from stable for the following members 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 Guide to Best's Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

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