AM Best Affirms Credit Ratings of ACMAT Corporation and ACSTAR Insurance Company
AM Best has affirmed ACMAT 's Long-Term Issuer Credit Rating of 'bbb' (Good) and its subsidiary ACSTAR Insurance Company's Financial Strength Rating of A (Excellent) and Long-Term ICR of 'a' (Excellent), with stable outlooks.
The ratings reflect ACSTAR's very strong balance sheet strength, strong operating performance, and appropriate enterprise risk management. Key factors include strongest level risk-adjusted capitalization measured by BCAR, prudent underwriting discipline, and expertise in specialized surety. Management's conservative approach to reserves and investments has generated consistent investment income supporting operating profits.
Notable challenges include volatility in premium volume due to non-standard surety market changes and significant stockholder dividends reducing policyholder's surplus for debt service and stock repurchases. However, ACSTAR maintains sufficient risk-adjusted capitalization to support its balance sheet strength assessment.
AM Best ha confermato il rating di credito a lungo termine di ACMAT pari a 'bbb' (Buono) e il rating di solidità finanziaria della sua controllata ACSTAR Insurance Company pari a A (Eccellente) e il rating di credito a lungo termine di 'a' (Eccellente), con prospettive stabili.
I rating riflettono la molto forte solidità patrimoniale di ACSTAR, la forte performance operativa e una gestione del rischio aziendale appropriata. I fattori chiave includono il livello di capitalizzazione adeguato al rischio più elevato misurato tramite BCAR, una disciplina prudente nella sottoscrizione e competenze nel settore delle garanzie specializzate. L'approccio conservativo della direzione nei riguardi delle riserve e degli investimenti ha generato un reddito costante dagli investimenti a supporto dei profitti operativi.
Le sfide notevoli includono la volatilità nel volume dei premi a causa dei cambiamenti nel mercato delle garanzie non standard e significativi dividendi agli azionisti che riducono il surplus dei sottoscrittori per il servizio del debito e il riacquisto di azioni. Tuttavia, ACSTAR mantiene una capitalizzazione adeguata al rischio sufficiente per sostenere la valutazione della forza patrimoniale.
AM Best ha afirmado el rating de crédito a largo plazo de ACMAT de 'bbb' (Bueno) y el rating de fortaleza financiera de su subsidiaria ACSTAR Insurance Company de A (Excelente) y ICR a largo plazo de 'a' (Excelente), con perspectivas estables.
Las calificaciones reflejan la muy sólida fortaleza de balance de ACSTAR, su fuerte rendimiento operativo y su adecuada gestión del riesgo empresarial. Los factores clave incluyen el nivel más alto de capitalización ajustada al riesgo medido por BCAR, disciplina prudente en la suscripción y experiencia en fianzas especializadas. El enfoque conservador de la dirección respecto a las reservas y las inversiones ha generado ingresos de inversión consistentes que respaldan las ganancias operativas.
Los desafíos notables incluyen la volatilidad en el volumen de primas debido a cambios en el mercado de fianzas no estándar y significativos dividendos a los accionistas que reducen el excedente de los asegurados para el servicio de la deuda y la recompra de acciones. Sin embargo, ACSTAR mantiene una capitalización ajustada al riesgo suficiente para apoyar su evaluación de la fortaleza de balance.
AM Best는 ACMAT의 장기 발행자 신용 등급을 'bbb' (좋음)으로 확인하고, 그 자회사 ACSTAR 보험회사의 재무 건전성 등급을 A (우수)로, 장기 신용 등급을 'a' (우수)로 평가하며 안정적인 전망을 제시했습니다.
이 등급들은 ACSTAR의 매우 강력한 재무 상태, 강한 운영 성과 및 적절한 기업 위험 관리의 반영입니다. 주요 요소로는 BCAR에 의해 측정된 위험 조정 자본화의 최고 수준, 신중한 인수 합병 정책 및 전문 보증에 대한 전문성이 포함됩니다. 경영진의 보수적인 준비금 및 투자 접근 방식은 운영 수익을 지원하는 일관된 투자 수익을 창출해 왔습니다.
주요 도전 과제에는 비표준 보증 시장 변화로 인한 보험료 수익의 변동성과 막대한 주주 배당금이 채무 서비스 및 주식 재구매를 위한 보험 가입자의 잉여금을 줄이는 것이 포함됩니다. 그러나 ACSTAR는 재무 상태 평가를 지원하기 위한 충분한 위험 조정 자본화를 유지하고 있습니다.
AM Best a confirmé le rating de crédit à long terme d'ACMAT à 'bbb' (Bon) et le rating de solidité financière de sa filiale ACSTAR Insurance Company à A (Excellent) et son ICR à long terme de 'a' (Excellent), avec des perspectives stables.
Ces notations reflètent la très forte solidité financière d'ACSTAR, sa solide performance opérationnelle et sa gestion des risques d'entreprise appropriée. Les facteurs clés incluent le niveau le plus élevé de capitalisation ajustée en fonction du risque mesuré par le BCAR, une discipline prudente en matière de souscription et une expertise dans les cautions spécialisées. L'approche conservatrice de la direction en matière de réserves et d'investissements a généré des revenus d'investissement constants soutenant les bénéfices d'exploitation.
Les défis notables incluent la volatilité du volume des primes due aux changements sur le marché des cautions non standard et des dividendes importants pour les actionnaires qui réduisent l'excédent des souscripteurs pour le service de la dette et le rachat d'actions. Cependant, ACSTAR maintient une capitalisation ajustée au risque suffisante pour soutenir son évaluation de la solidité du bilan.
AM Best hat das Rating der langfristigen Kreditwürdigkeit von ACMAT mit 'bbb' (Gut) bestätigt sowie das Finanzstärke-Rating ihrer Tochtergesellschaft ACSTAR Insurance Company, welches ein A (Hervorragend) und ein langfristiges ICR von 'a' (Hervorragend) aufweist, mit stabilen Ausblicken.
Die Ratings spiegeln die sehr starke Bilanzstärke von ACSTAR, die starke operative Leistung sowie ein angemessenes Risikomanagement auf Unternehmensebene wider. Schlüsselfaktoren sind das stärkste Niveau der risikoadjustierten Kapitalisierung, gemessen an BCAR, eine umsichtige Zeichnungstechnik und Expertise im spezialisierten Bürgschaftsbereich. Der konservative Ansatz des Managements hinsichtlich Rücklagen und Investitionen hat konstante Erträge aus Investitionen generiert, die die operativen Gewinne unterstützen.
Bemerkenswerte Herausforderungen sind die Volatilität des Prämienvolumens aufgrund von Veränderungen im nicht-standardmäßigen Bürgschaftsmarkt sowie erhebliche Dividenden für Aktionäre, die den Überschuss der Versicherungsnehmer für die Schuldendienstzahlung und den Aktienrückkauf reduzieren. Dennoch hält ACSTAR über ausreichende risikoadjustierte Kapitalisierung verfügt, um die Beurteilung seiner Bilanzstärke zu unterstützen.
- Strongest level of risk-adjusted capitalization (BCAR)
- Consistent investment income contributing to operating profits
- Very strong balance sheet strength
- Strong operating performance in specialized surety niche
- Volatile premium volume due to non-standard surety market conditions
- Significant stockholder dividends reducing policyholder's surplus
- business profile
The ratings reflect ACSTAR’s balance sheet strength, which AM Best assesses as very strong, as well as its strong operating performance, limited business profile and appropriate enterprise risk management.
The ratings consider ACSTAR’s strongest level of risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), as well as management’s prudent underwriting discipline and expertise in a specialized niche of the surety sector. Management takes a conservative approach to both reserves and investments, generating consistent investment income that has bolstered operating profits. Offsetting these positive rating factors is the volatility in ACSTAR’s premium volume, driven by changes in the non-standard surety market. Further, sizable stockholder dividends have reduced policyholder’s surplus, as they were used for debt service and opportunistic stock repurchases by the parent, ACMAT. However, ACSTAR’s risk-adjusted capitalization remains more than supportive of its balance sheet strength assessment. AM Best will continue to monitor ACSTAR’s level of capital and premium volume trends closely, along with the evolving market conditions, to ensure that the strong operating performance assessment remains appropriate.
The stable outlooks reflect ACSTAR’s very strong balance sheet strength and the expectation of continued profitable operating results in the near term.
This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best's Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.
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Sebastian Caballero Panchas
Financial Analyst
+1 908 882 1680
sebastian.caballero@ambest.com
Christopher Sharkey
Associate Director, Public Relations
+1 908 882 2310
christopher.sharkey@ambest.com
Adrienne Stark
Associate Director
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adrienne.stark@ambest.com
Al Slavin
Senior Public Relations Specialist
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al.slavin@ambest.com
Source: AM Best
FAQ
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