AM Best affirms the financial strength rating of ‘A’ (Excellent) and the long-term issuer credit rating of ‘a’ (Excellent) of Ardellis Insurance Ltd, the Bermuda captive of UFP Industries. The outlook of the ratings is ‘stable’. The ratings reflect the captive’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. Ardellis is a wholly owned subsidiary of UFP Industries and provides reimbursement cover for medical stop-loss, workers’ compensation, general liability, automobile physical damage liability, property and trade credit receivables to its parent and its subsidiaries. It also provides medical stop-loss, excess property and excess general liability cover for third parties. As of 31 December 2025, approximately 62 per cent of the captive’s premium represented unaffiliated business. Balance sheet strength is supported by risk-adjusted capitalisation at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR). On a five-year and ten-year average basis, the captive’s combined and operating ratios have outperformed the general property and casualty industry, which AM Best attributes to its safety and loss control practices, management’s underwriting expertise and low overhead. The agency considers the captive’s enterprise risk management framework and risk management capabilities appropriate for its risk profile, and says it benefits from being an integral part of its parent’s framework.
