A.M. Best Assigns Ratings to Builders Mutual Group and Its Member.

OLDWICK, N.J. -- A.M. Best Co. has assigned a financial strength rating (FSR) of A (Excellent) and issuer credit ratings (ICR) of "a" to Builders Mutual Group (Builders) and its member, Builders Premier Insurance Company (BPIC). A.M. Best also has affirmed the FSR of A (Excellent) and ICR of "a" of Builders lead company member, Builders Mutual Insurance Company (BMIC). The outlook for all ratings is stable. All companies are domiciled in Raleigh, NC.

The rating actions are based on Builders' excellent capitalization, strong underwriting and operating performance and consistently favorable reserve development trends driven by effective loss control practices and aggressive claims management. The ratings also reflect the group's local market expertise and affiliation with the North Carolina Home Builders Association (NCHBA), of which 65% of its members obtain workers' compensation coverage through BMIC.

These positive rating factors are somewhat offset by Builders' concentrated business profile, which leaves it susceptible to economic, legislative, judicial and regulatory changes, as well as the economics of the building industry.

For Best's Credit Ratings, an overview of the rating process and rating methodologies, please visit www.ambest.com/ratings.

The principal methodologies used in determining these ratings, including any additional methodologies and factors that may have been considered, can be found at www.ambest.com/ratings/methodology.

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.