Most of you who know me know that I like to keep things short, punchy, and to the point. I'm not usually one to write a dissertation on a topic, but this is the kind of achievement that deserves a little more context.
HAI Group® has come a long way since our founding in June 1987, when we set out to fill a critical gap in the marketplace by providing property-casualty insurance solutions exclusively for the public housing industry.
Challenges remain, but we have gotten better at anticipating and meeting those challenges head-on over time.
Founded in 1899, AM Best is the world's first credit rating agency. What began in a one-room office in New York City grew into what is now the largest credit rating agency in the world specializing in the insurance industry.
AM Best's ratings provide an independent assessment of an insurer's financial stability, operating performance, and ability to meet ongoing obligations—critical information for policyholders, reinsurers, and partners.
For most insurance providers, seeking an AM Best rating is essential for doing business. Most financial institutions, reinsurers, and lenders require their partners to maintain an AM Best rating as part of risk management protocols and loan covenants. Without a strong rating, many insurers couldn't operate in their markets.
By maintaining and now strengthening our rating, we give our members and partners confidence that HAI Group is financially sound and well-managed, allowing them to do business with us without hesitation.
This upgrade has been decades in the making. HAI Group's member companies have steadily strengthened their position over time, with AM Best recognizing our growth and stability at every major milestone:
1994: Housing Authority Property Insurance, A Mutual Company (HAPI) received its first rating of A- (Excellent) with a Stable Outlook.
1997: Housing Authority Risk Retention Group, Inc. (HARRG) received its first rating of B+ (Good).
2000: HARRG was upgraded to A- (Excellent) with a Stable Outlook.
2010: HARRG, HAPI, and Housing Enterprise Insurance Company, Inc. (HEIC) were upgraded collectively to A (Excellent) with a Stable Outlook.
2025: The combined companies were upgraded to A+ (Superior), placing HAI Group among an elite group of just six captive insurers worldwide with this rating. Only three captive insurers globally are rated higher. (as of Sept. 25, 2025)
Each step reflects the collective effort of our Board, leadership team, and staff to strengthen our capital base, refine our underwriting, and deliver results for our members. Every day needs teamwork; this milestone proves what we can achieve together.
AM Best explained in their upgrade announcement that "the ratings reflect HAI Group's balance sheet strength, which AM Best assesses as strongest, as well as its strong operating performance, favorable business profile and appropriate enterprise risk management (ERM)."
They also stated that "the rating upgrades reflect HAI Group's sustained improvement in underwriting results and high level of operating profitability relative to similarly assessed peers. The strong operating performance assessment has been enhanced further by robust levels of net investment income that exceed the industry average."
I'm proud of how AM Best recognized the transformation that began in 2017. In their announcement, they stated that HAI Group's "underwriting results began showing marked improvement in 2017 following a change in executive leadership, and since then have generated strong results consistently. This positive trend in underwriting and operating profitability is supported by stable premium growth driven by targeted rate actions and favorable increases in total insured value, disciplined expense management, and consistently favorable loss development year after year."
We have always focused on doing what's right for our members, not chasing profit. As I often say, be purpose-driven, not image-driven—and this upgrade is the result of years of purpose-driven work.
These improvements have fueled healthy organic surplus growth over the past five years, reinforced our capital position, and strengthened our ability to deliver long-term value. AM Best also noted our leading market position in public housing, expanding presence in affordable housing, exceptionally strong client retention, and a clear, proactive enterprise risk management framework—all factors that put us in a strong position to keep growing.
Our founding in 1987 was made possible, in part, by the Liability Risk Retention Act of 1986, which allowed the formation of HARRG, and the collaboration of leaders from several large housing agencies across the nation who pooled resources to capitalize HARRG.
A captive insurer is an insurance company created and owned by its policyholders, with the primary purpose of insuring the risks of those owners. Captives give their members more control over coverage, pricing, and risk management. In the 1980s, the public housing industry faced an insurance crisis. Many commercial insurers were exiting the market or charging prohibitively high rates. Creating a captive insurer was the most effective way to ensure stable, affordable, and tailored coverage for housing authorities nationwide.
Since then, HAI Group has grown from a single-line captive insurer into a national provider of specialized insurance programs and industry resources. Over the past nearly four decades, we have:
Strong corporate governance has been a key factor in our success. Our ability to lean on our members as trusted advisors and industry experts has guided our decisions and ensured we remain focused on serving the housing industry effectively.
While we're proud of this achievement, we know our work doesn't stop here. Maintaining a strong rating is critical to preserving our members' trust and ensuring we can continue adapting to the changing landscape of public and affordable housing alongside our members and partners.
The A+ rating is both a validation of what we've accomplished and a challenge to continue raising the bar. Our goal is to ensure that HAI Group remains a trusted, innovative partner to housing providers—today, tomorrow, and for the next generation.
Thank you to everyone who has been part of our story. This milestone belongs to all of us.
To learn more about our mission, companies, and leadership, visit haigroup.com/about-us. Read HAI Group's press release here.
To read the full AM Best announcement, visit AM Best's press release.
This article is for general information only. HAI Group® makes no representation or warranty about the accuracy or applicability of this information for any particular use or circumstance. Your use of this information is at your own discretion and risk. HAI Group® and any author or contributor identified herein assume no responsibility for your use of this information. You should consult with your attorney or subject matter advisor before adopting any risk management strategy or policy.
HAI Group® is a marketing name used to refer to insurers, a producer, and related service providers affiliated through a common mission, management, and governance. Property-casualty insurance and related services are written or provided by Housing Authority Property Insurance, A Mutual Company; Housing Enterprise Insurance Company, Inc.; Housing Specialty Insurance Company, Inc.; Housing Investment Group, Inc.; and Housing Insurance Services (DBA Housing Insurance Agency Services in NY and MI).