HAI Group has had its financial strength and long-term issuer credit ratings affirmed, but the outlooks for both have been revised down.
A.M. Best affirmed HAI Group financial strength rating of “A (Excellent)” and long-term issuer credit ratings of “a”.
The ratings reflect HAI Group’s excellent capitalisation, very strong operating results, leading position and proven expertise in the niche public housing authority market.
But its concentration of risk in the public housing authority sector, which “magnifies the impact of market cycles, public policy and legislative changes”, and falls in its underwriting profitability, coupled with the low interest rate environment, mean its outlook is negative.
The rating agency also affirmed the financial strength rating of “A- (Excellent)” and long-term issuer credit rating of “a-“ of HAI Group’s Housing Specialty Insurance Company (HSIC).
This rating reflects HSIC’s strong capital position and the support it receives from HAI Group.
Partially offsetting this is “the start-up nature of the company, which is mitigated by the successful performance and support of HAI Group”, according to A.M. Best.