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A.M. Best Assigns Ratings to Builders’ Mutual Casualty Company CONTACTS:
FOR IMMEDIATE RELEASE OLDWICK, N.J., July 17, 2008—A.M. Best Co. has assigned a financial strength rating (FSR) of A- (Excellent) and an issuer credit rating (ICR) of “a-” to Builders’ Mutual Casualty Company (Builders’ Mutual) (Lenexa, KS). The outlook assigned to both ratings is stable. Concurrently, A.M. Best has withdrawn the FSR of A- (Excellent)
and ICRs of “a-” of Builders’ Association Self-Insurers
Fund of Missouri (BASIF-MO) (Kansas City, MO) and Builders’ Association
Self-Insurers Fund of Kansas These rating actions reflect Builders’ Mutual’s strong operating performance, conservative loss reserves, solid capitalization and its prospective risk-adjusted capitalization. Partially offsetting these positive rating factors are
the Funds concentrated risk profile due to exclusively providing workers’ Builders’ Mutual’s positive rating factors are derived from its predecessors’ funds, strong safety and loss control standards and strict underwriting controls. The Funds combined ratio compares favorably with peers due to its exceptionally low loss ratio. These strengths have allowed the Funds to provide low workers' compensation rates and high dividends to member contractors that belong to one of six sponsoring trade associations. Builders’ Mutual has met A.M. Best’s stringent capital requirements for new company and/or merger formations, and the ratings are a reflection of its ability to meet A.M. Best’s arduous prospective risk-adjusted capitalization requirements. The capitalization is expected to remain supportive of Builders’ Mutual’s annual projected business growth through 2010; however, A.M. Best remains concerned that protracted economic pressures could compromise surplus growth through a decline in performance and profitability. A.M. Best remains the leading rating agency of captive insurers rating a wide variety of more than 200 captives in the United States and throughout the world. For current Best’s Ratings and independent data on the captive and alternative insurance market, please visit www.ambest.com/captive. Founded
in 1899, A.M. Best Company is a global full-service credit rating organization
dedicated to serving the financial and health care service industries,
including insurance companies, banks, hospitals and health care system
providers. For more information, visit www.ambest.com. ### |
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