In a testament to its unwavering commitment to excellence and sound financial practices, HAI Group's Financial Strength Rating (FSR) of 'A' and Issuer Credit Rating (ICR) of 'a+' were reaffirmed by the global credit rating agency AM Best. Simultaneously, the company's outlook was increased from "stable" to "positive."
"This positive shift in our outlook can be attributed to the consistency in our favorable operating performance, in conjunction with the strength of our balance sheet and the maturity of our enterprise risk management (ERM) program," said HAI Group's COO, CFO, and Treasurer, Troy LePage. “Our financial strength is truly a testament to the hard work of our entire team, who work tirelessly to meet the needs of our members and policyholders.”
According to AM Best, an FSR is an independent opinion of an insurer's financial strength and ability to meet its ongoing insurance policy and contract obligations. An ICR is an independent opinion of an entity's ability to meet its ongoing financial obligations.
Driving factors behind the positive outlook
AM Best attributes the decision to upgrade HAI Group's outlook to "positive" to the organization's operating performance, including continuously improved underwriting and operating profitability since 2017.
"These ratings reflect HAI Group's balance sheet strength, which AM Best assesses as strongest, as well as its adequate operating performance, favorable business profile, and appropriate enterprise risk management (ERM)," AM Best said in its October 20 announcement.
AM Best noted that a strong focus on high persistency, adherence to price adequacy, minimal volatility, favorable loss reserve development, and disciplined expense management have fueled HAI Group's success.
"We are proud to receive this reaffirmation and positive outlook from AM Best," said HAI Group's President and CEO, Ed Malaspina. "It reflects our unwavering dedication to providing best-in-class services to our policyholders, underscoring the hard work and commitment of our entire team. We are determined to continue on this path of excellence."
Solid balance sheet and capital adequacy
HAI Group's balance sheet assessment has been characterized as the "strongest" by AM Best, backed by the company's risk-adjusted capitalization at the highest level, as measured by Best's Capital Adequacy Ratio (BCAR).
Additionally, HAI Group maintains favorable levels of liquidity, low underwriting leverage, and a limited dependence on reinsurance. These factors collectively bolster the balance sheet strength, ensuring stability and confidence for policyholders and investors.
Diversified business profile and strong market position
AM Best pointed out that HAI Group's business profile benefits from a strong market position in the public housing sector while also venturing into the broader affordable housing market, showcasing the company's geographically diversified portfolio. HAI Group is adapting to the increasing demand for affordable housing and ensuring that its services can meet the changing needs of this vital sector.
HAI Group's enterprise risk management practices further support this diversified business profile, ensuring that the company can effectively navigate the complexities of today's insurance landscape, AM Best explained.
Bottom Line: Positive outlook a testament to HAI Group's dedication to policyholders
LePage described HAI Group's positive outlook from AM Best as a reflection of the company's financial prowess and a testament to its unwavering dedication to providing excellent services to its policyholders.
"HAI Group is committed to excellence and sound financial practices,” LePage said. "We are well-positioned to continue delivering value to our clients while maintaining the trust of our stakeholders."