A.M. Best has upgraded the financial strength rating to A (excellent) from A- (excellent) and the long-term issuer credit rating to “a” from “a-” of Restoration Risk Retention Group, Burlington, Vermont.
A.M. Best has categorised Restoration RRG’s ratings as very strong and states that it reflect RRRG’s balance sheet strength, as well as its strong operating performance, limited business profile and appropriate enterprise risk management.
In addition, the outlook of these credit ratings has been revised to stable from positive.
This upgrade reflects Restoration RRG’s sustained improvement in its operating performance, which compares favourably with the industry averages, despite the inherent challenges that come along with being a mono-line speciality, niche insurer.
Restoration RRG uses its quasi-captive position for access to independent Servpro franchises, and its partnership with its sponsor, Servpro Industries, in providing best practices training and loss prevention tactics to those Servpro franchises that Restoration RRG insures.
In recent years, the firm has reduced its loss volatility through improvements in claims management and litigation strategies, resulting annually in favourable reserve development.
Due to steps taken by management, their underwriting profitability has improved significantly, which A.M. Best anticipates should continue without material deviation.
