AM Best Affirms Credit Ratings of Restoration Risk Retention Group, Inc.
AM Best has affirmed the Financial Strength Rating (FSR) of A (Excellent) and the Long-Term Issuer Credit Rating (Long-Term ICR) of "a" (Excellent) of Restoration Risk Retention Group, Inc. (RRRG) (Burlington, VT). The outlook of the FSR is stable, while the outlook of the Long-Term ICR is positive.
The Credit Ratings (ratings) reflect RRRG's 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.
RRRG's very strong balance sheet strength is supported by the strongest level of risk-adjusted capitalization, as measured by Best's Capital Adequacy Ratio (BCAR), in addition to strong liquidity measures and historically, favorable reserve development. RRRG has reduced its balance sheet exposure to equity market volatility in recent years, thereby enhancing its risk-adjusted capitalization. The operating performance assessment of strong is reflected through the company's favorable underwriting results and its loss history, reflecting a combined ratio that outperforms industry averages due to favorable underwriting leverage and improved underwriting expense structure. The positive Long-Term ICR outlook reflects RRRG's distinct improvement in its underwriting results as the company continues to improve its claims management and resolution practices. The steps taken by management have significantly improved underwriting profitability, and AM Best anticipates the company will maintain its operating results without material deviation.
AM Best recognizes management's prudent risk managemnt philosophy, which includes a conservative risk appetite in addition to providing best practices training and loss prevention tactics to those Servpro franchisees that RRRG insures. RRRG conducts business in all 50 states through more than 2,100 Independent Servpro franchisees.
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