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A.M. Best Affirms Credit Ratings of Ardellis Insurance Ltd.


A.M. Best has affirmed the Financial Strength Rating of A-
(Excellent) and the Long-Term Issuer Credit Rating of "a-" of Ardellis
Insurance Ltd. (Ardellis) (Bermuda). The outlook of these Credit Ratings
(ratings) is stable.

The ratings reflect Ardellis' balance sheet strength, which A.M. Best
categorizes as very strong, as well as its adequate operating
performance, limited business profile and appropriate enterprise risk

Ardellis is a wholly owned subsidiary of Universal Forest Products,
Inc., and provides reimbursement coverage for general liability, auto
liability, workers' compensation, property and medical stop-loss to its
parent. Ardellis also assumes medical stop-loss exposure from third
parties. Currently, approximately two-thirds of Ardellis' premiums come
from its parent. However, the third-party medical stop-loss business is
fast growing and could make up half of Ardellis' total premiums in a few
years. Any significant deterioration in operating performance,
significant erosion in risk-adjusted capitalization or rapid growth in
premiums could result in downward movement in the ratings or outlooks.

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

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