AM Best Upgrades Issuer Credit Rating of Restoration Risk Retention Group, Inc.

AM Best has upgraded the Long-Term Issuer Credit Rating (Long-Term ICR) to “a+” (Excellent) from “a” (Excellent) and affirmed the Financial Strength Rating (FSR) of A (Excellent) of Restoration Risk Retention Group, Inc. (RRRG) (Burlington, VT). In addition, AM Best has revised the outlook of the Long-Term ICR to stable from positive while the FSR is stable.

These Credit Ratings (ratings) reflect RRRG’s balance sheet strength, which AM Best assesses as very strong, as well as its strong operating performance, neutral business profile and appropriate enterprise risk management.

The stable outlooks consider AM Best's expectation that RRRG will maintain its balance sheet strength assessment at the very strong level while producing strong operating results and maintaining prudent risk management.

RRRG’s balance sheet strength assessment is underpinned by its risk-adjusted capitalization, which is at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR) across all return periods in standard scenarios. Surplus has grown organically through the company's strong operational results, generating profits in all but one year during the past 10-year period.

The company’s strong operating performance reflects its positive underwriting results over the past five years, driven by favorable pure loss ratios, improvements to claims handling, and favorable loss adjustment expenses compared with the industry average. RRRG benefits from its inherent advantage of providing coverage only for its sponsor's franchises, enabling a low-cost structure in terms of underwriting expenses, which have continued to trend positively over the past several years and outpace the five- and 10-year industry averages.

RRRG’s business profile is assessed as neutral, reflecting its position as a quasi-captive writing policies solely for the benefit of ServPro franchises, underwriting business in all 50 states.

This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best's Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

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