A.M. Best Withdraws Ratings of Risk Management Association of Residential Construction Employers Council

OLDWICK, N.J.--(BUSINESS WIRE)-- A.M. Best Co. has downgraded the financial strength rating (FSR) to B+ (Good) from A- (Excellent) and the issuer credit rating (ICR) to “bbb-” from “a-”of Risk Management Association of Residential Construction Employers Council (RMA) (Downers Grove, IL). The ratings remain under review with negative implications. Concurrently, A.M. Best has withdrawn the ratings and assigned a category NR-4 (Company Request) to the FSR and an “nr” to the ICR. The withdrawals are based on management’s request to no longer participate in A.M. Best’s interactive rating process.

A.M. Best’s rating downgrades are primarily based on the correction of past under reserving and return of excess collateral, which from an accounting standpoint also serves to reduce surplus.

A.M. Best remains the leading rating agency of captive insurers rating a wide variety of more than 200 captives in the United States and throughout the world.

The principal methodology used in determining these ratings is Best’s Credit Rating Methodology - Global Life and Non-Life Insurance Edition, which provides a comprehensive explanation of A.M. Best’s rating process and highlights the different rating criteria employed. Additional key criteria utilized include: “Risk Management and the Rating Process for Insurance Companies”; “Understanding BCAR for Property/Casualty Insurers”; and “A.M. Best’s Rating Methodology for Captive Insurance Companies.” Methodologies can be found at www.ambest.com/ratings/methodology.

Founded in 1899, A.M. Best Company is a global full-service credit rating organization dedicated to serving the financial and health care service industries, including insurance companies, banks, hospitals and health care system providers. For more information, visit www.ambest.com.

A.M. Best Co.
Thomas Herriger, 908-439-2200, ext. 5375
Senior Financial Analyst
[email protected]
or
Steven Chirico, CPA, 908-439-2200, ext. 5087
Assistant Vice President
[email protected]
or
Rachelle Morrow, 908-439-2200, ext. 5378
Senior Manager, Public Relations
[email protected]
or
Jim Peavy, 908-439-2200, ext. 5644
Assistant Vice President, Public Relations
[email protected]

Source: A.M. Best Co.