An HAI Group risk retention group is among a select group of property and casualty insurers nationwide to earn Demotech's 2022 Stakeholder Team Accomplishment Recognition (STAR) Award.
Demotech, an Ohio-based financial analysis firm serving the insurance industry, developed the STAR Award in 2013 "to identify and recognize insurers that satisfied all stakeholders, not just a single segment of interested parties," said Barb Albert, executive editor of The Demotech Difference publication, in a letter to HAI Group.
Among the 'elite few' in the insurance industry
According to Albert, the 2021 operating results for 2,650 property and casualty insurers were reviewed by Demotech for the 2022 Star Award. Only 21 insurers met the firm's criteria, including Housing Authority Risk Retention Group, Inc. (HARRG)—the first insurance company established under HAI Group.
"As a STAR Award winner, [HARRG] will be recognized as a top achiever in the insurance industry, concurrently sustaining profitability, financial stability, and stakeholder satisfaction," Albert said. "In summary, although meeting or exceeding each of our stakeholder criteria was possible, less than 1 percent of [property and casualty] insurance companies did so, and [HARRG] was one of the elite few," Albert said.
HARRG is a non-profit captive mutual risk retention group incorporated in March 1987. The company provides liability insurance to public housing authorities. Available coverages include general liability, public officials' errors and omissions, employment practices, law enforcement, lead-based paint, employee benefit, auto, hired and non-owned auto, mold, and terrorism.
Meeting the needs of partners and regulators
To earn a 2022 Star Award, HARRG had to demonstrate statutory financial results that satisfied all of the company’s stakeholders in 2021.
“Our team works incredibly hard across multiple disciplines to strike the appropriate balance of benefitting our members while simultaneously ensuring we meet the needs of our various partners and regulators,” said HAI Group Chief Financial Officer Troy LePage. “This award from Demotech, a widely respected evaluator of insurance companies, validates that we’ve done so successfully and is something we are certainly very proud of.”
Albert said HARRG was above the median in its Demotech company classification system for compensating employees, producers, and claimants. Regulators and consumers also benefited due to HARRG's strong balance sheet and relative financial stability. Finally, HARRG showed profitability in the top third of its company classification system category based on return on net admitted assets.
Ed Malaspina, president and CEO of HAI Group, said HARRG employees have gone above and beyond despite the personal and professional challenges in today's world.
"Our employees are still coming into the office and doing the work, and they're doing it for the right reasons," he said. "For Demotech to recognize that, it's well deserved and much appreciated. We're very proud to receive this award."
AM Best, a global credit rating agency, recently affirmed HAI Group's Financial Strength Rating (FSR) of 'A' and Issuer Credit Rating (ICR) of 'a+.'
Both ratings are considered 'excellent,' according to AM Best's rating scale.
