Market Overview

A.M. Best Affirms Credit Ratings of Builders Reinsurance S.A. and Builders Direct S.A.

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A.M. Best has affirmed the Financial Strength Rating of A-
(Excellent) and the Long-Term Issuer Credit Rating of "a-" of Builders
Reinsurance S.A. (Builders Re) (Luxembourg) and Builders
Direct S.A. (Builders Direct) (Luxembourg), both subsidiaries of
HOCHTIEF Aktiengesellschaft (HOCHTIEF), a large Germany-based
construction company that is majority owned by Actividades de
Construcción y Servicios S.A. (ACS). The outlook of these Credit
Ratings (ratings) remains stable.

The ratings reflect Builders Re's balance sheet strength, which A.M.
Best categorises as very strong, as well as its strong operating
performance, limited business profile and appropriate enterprise risk
management.

Builders Re's balance sheet strength is supported by its risk-adjusted
capitalisation being at the strongest level, as measured by Best's
Capital Adequacy Ratio (BCAR). A.M. Best expects Builders Re's
risk-adjusted capitalisation to remain at a strongest level, supported
by good internal capital generation.

Builders Re has a track record of strong and stable operating
performance, largely driven by robust underwriting results, as
demonstrated by a three-year average combined ratio of 79.8%.
Prospective performance is subject to some volatility, mainly from
exposure to potential aggregation of losses. The company partly
mitigates this risk by purchasing whole account quota share cover from
financially strong reinsurers.

Builders Re's business profile assessment reflects the company's
geographically concentrated portfolio of casualty risks that emanate
from HOCHTIEF's construction operations in North America. Builders Re
also reinsures the business emanating from HOCHTIEF's smaller insurance
company, Builders Direct.

Builders Direct's ratings primarily reflect its strategic importance to
Builders Re as a source of business growth and diversification, as well
as explicit support from Builders Re in the form of reinsurance
protection. Builders Direct was created in 2013 and provides insurance
cover to the HOCHTIEF group, as well as to third-party entities with a
focus on mutual companies.

A.M. Best remains the leading rating agency of alternative risk
transfer entities, with more than 200 such vehicles rated throughout the
world. For current Best's Credit Ratings and independent data on the
captive and alternative risk transfer insurance market, please visit
www.ambest.com/captive.

This press release relates to rating(s) that have been published on
A.M. 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 A.M. Best's
Recent
Rating Activity
web page. For additional information
regarding the use and limitations of Credit Rating opinions, please view
Understanding
Best's Credit Ratings
. For information on the proper media
use of Best's Credit Ratings and A.M. Best press releases, please view
Guide
for Media - Proper Use of Best's Credit Ratings and A.M. Best Rating
Action Press Releases
.

A.M. Best is a global rating agency and information provider with a
unique focus on the insurance industry. Visit
www.ambest.com
for more information
.

Copyright © 2018 by A.M. Best Rating Services, Inc. and/or its
affiliates. ALL RIGHTS RESERVED.

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