AM Best revises the outlooks on the ratings of Apex Insurance Risk Retention Group Inc. to negative from stable, citing volatility and deterioration in operating performance. The agency affirms the Financial Strength Rating of ‘A-’ (Excellent) and the Long-Term Issuer Credit Rating of ‘a-’ (Excellent) of the Burlington, Vermont-domiciled group. The ratings reflect balance sheet strength, which AM Best assesses as very strong, together with adequate operating performance, a limited business profile and appropriate enterprise risk management (ERM). AM Best attributes the negative outlooks to volatility and deterioration in operating performance across 2025 and the first half of 2026, which it says has left performance measures "beginning to fall below the levels expected of its ‘adequate’ assessment level". The agency names earnings volatility as a further concern. Despite those concerns, AM Best expects the balance sheet strength assessment to remain at the very strong level, and says business prospects continue to be favourable with regard to the role of Apex as an insurer, its strategic importance to parent Bright Horizons Family Solutions and the financial flexibility available to it. The agency expects Apex to execute its future business strategy and to continue to benefit from the implicit and explicit support of Bright Horizons, given the level of integration of Apex within the enterprise and its strategic importance to the organisation as what AM Best describes as "an effective alternative risk transfer vehicle". Apex covers general liability exposures in North America for Bright Horizons and its subsidiaries and affiliated companies, including professional liability, physical and sexual misconduct, and personal and advertising injury. Bright Horizons provides early education and childcare, back-up care and workforce education services, and AM Best states that it serves more than 1,450 employers. The rating action is dated 12 October 2026.
