AM Best affirms PA-2 rating for Excess Re, outlook stable

AM Best affirms PA-2 rating for Excess Re, outlook stable | Insurance Business Asia

Reinsurance

AM Best affirms PA-2 rating for Excess Re, outlook stable

Firm recognized for excellent underwriting, governance, and financial condition

Reinsurance

By
Kenneth Araullo

AM Best has affirmed the PA-2 (Excellent) Performance Assessment of Excess Reinsurance Underwriters Inc. (Excess Re), based in Woodbury, N.J. The outlook for the assessment remains stable.

The company, a managing general underwriter, specializes in specific and aggregate medical stop-loss insurance across all 50 states.

According to AM Best, Excess Re’s underwriting performance has been excellent throughout the year, bolstered by its approach to risk selection, product offerings, and a seasoned executive team.

The company’s proprietary underwriting system enables full-service support throughout a policy’s life cycle, allowing for the customization of new or expanded coverage options.

Excess Re’s governance and internal controls are also assessed as excellent, with AM Best citing the company’s alignment of interests with Argo Capital Group Ltd. AM Best noted that this relationship has been a key element in Excess Re’s strategic approach to developing innovative products for a niche market.

The company’s financial condition has been described as excellent, with consistent revenue growth and a stable source of income over the past five years. Positive cash flow has further supported the company’s track record of profitability.

Excess Re’s organizational talent is rated highly, with its executive team bringing extensive experience in its specialized market. The company’s emphasis on internal promotion and training has led to a long-tenured team, which AM Best considers a strength.

In terms of relationships, AM Best notes that Excess Re has a strong, though limited, number of business connections. While the company has a national reach, its value comes more from its expertise in underwriting than from program diversification.

However, AM Best acknowledges that the quality of these relationships has been stable, and Excess Re has demonstrated its ability to maintain them effectively.

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