A.M. Best Co. has affirmed the financial strength rating of “A (Excellent)” and the issuer credit ratings of “a” of Housing Authority Property Insurance, which is made up of a mutual company and housing authority risk retention group, and subsidiary Housing Enterprise Insurance Company.
Excellent capitalisation, very strong operating results, a market leading position and proven expertise in the niche public housing authority market are the reasons for the strong ratings.
“Partially offsetting these positive rating factors is the group's concentration of risk in the public housing authority sector, which magnifies the impact of market cycles and public policy and legislative changes,” added a statement from the ratings firm.
The Housing Authority Insurance Group provides property and liability coverages to public housing authorities and their affiliated operations throughout the US.
A.M. Best pointed out the group’s “solid operating performance”, which sees it maintain a market share of about 40 percent, adding that it has “progressively built up its surplus through retained earnings as its underwriting leverage is very low”.
“The group's underwriting results remain strong due to its focused and disciplined underwriting approach and conservative reserving. Over the years, it has increased rates when appropriate and withdrawn from problematic accounts and lines of business, such as workers' compensation.”
“In addition, Housing Authority Insurance Group's operating performance benefits significantly from effective enterprise risk management, its tax efficient structure and strong client relationships, which are supported by a number of customized programs and services.”
