At a glance
- AM Best said the positive outlook reflects underwriting metrics that have consistently outperformed industry peers and a long record of stability and favorable profitability margins.
- The assessment rates five areas as excellent: underwriting capabilities, governance and internal controls, financial condition, organizational talent, and depth and breadth of relationships.
- For carriers and capacity providers behind stop-loss programs, the revised outlook adds AM Best's view that Excess Re's underwriting metrics have outperformed peers, alongside each program's own loss experience.
AM Best revised its outlook on Excess Reinsurance Underwriters Inc. to positive from stable and affirmed the Woodbury, N.J., managing general underwriter's PA-2 (Excellent) performance assessment, the agency said Nov. 4.
AM Best said the positive outlook reflects underwriting metrics that have consistently outperformed industry peers and a long record of stability and favorable profitability margins. Excess Re writes specific and aggregate medical stop-loss coverage for a variety of entities across 50 states. The agency said loss ratios are favorable relative to peers.
The assessment rates five areas as excellent: underwriting capabilities, governance and internal controls, financial condition, organizational talent, and depth and breadth of relationships. On financial condition, AM Best cited profitable results supported by stable income sources and retained earnings, with leverage it does not view as a concern. It also noted alignment of interests with Argo Capital Group Ltd.
For carriers and capacity providers behind stop-loss programs, the revised outlook adds AM Best's view that Excess Re's underwriting metrics have outperformed peers, alongside each program's own loss experience.
AM Best said Excess Re's proprietary underwriting system supports full-lifecycle policy servicing and customized implementations or expanded coverage. Long-tenured capacity providers and contractual protections underpin relationships, the agency said.
Reported by the Cat bonds & reinsurance desk from AM Best News. Published . Corrections