AM Best has assigned a financial strength rating of “A” (Excellent) and long-term issuer credit ratings of “a” (Excellent) to the new members of Builders Insurance Group.
All headquartered in Georgia, the new members include Crossroads Insurance Company (CIC), Georgia Builders Insurance Company (GBIC) and United Builders Insurance Company (UBIC).
The companies are fully owned by Builders Insurance, an association captive company, and the parent maintains ultimate senior management responsibility for the companies.
The outlook assigned to these credit ratings is stable.
The ratings company says the ratings reflect, on a consolidated basis, Builders Insurance Group’s balance sheet strength, which it assesses as “very strong”.
In addition, the company has adequate operating performance, neutral business profile and appropriate enterprise risk management.
AM Best considers CIC, GBIC and UBIC as part of the group’s rating unit based on operational support, strategic importance to the group’s strategy and explicit support provided through an intercompany reinsurance agreement.
Currently, CIC, GBIC and UBIC are not writing business actively, but Builders Insurance Group plans to use these newer entities for its expansion plans in the near term.
Builders Insurance Group’s ratings have subsequently been extended to CIC, GBIC and UBIC.
