//BestWire// - AM Best has affirmed the Financial Strength Rating (FSR) of A (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of "a+" (Excellent) of the insurance members of HAI Group (Cheshire, CT). The outlook of these Credit Ratings (ratings) is positive. (See below for a detailed listing of the members and ratings.)

These ratings reflect HAI Group's balance sheet strength, which AM Best assesses as strongest, as well as its adequate operating performance, favorable business profile and appropriate enterprise risk management (ERM).

AM Best's decision to affirm the positive outlook is reflective of HAI Group's operating performance, which has shown a sustained improvement in profitability since 2017. The group continues to see healthy growth in premiums (new and renewals) and has been able to achieve rate price adequacy while facing inflationary pressures and rising total insured values. The group has also benefited from having minimal exposure to catastrophe events, favorable loss reserve development on prior accident years and disciplined expense management. The culmination of these factors has contributed to group's ability to perform at levels more in line with its higher assessed peers over the past five years. Going forward, AM Best will continue to monitor the group's upward trend in profitability and whether these results prove to be sustainable over the intermediate term.

HAI Group's balance sheet strength assessment is well-supported by its strongest risk-adjusted capitalization, as measured by Best's Capital Adequacy Ratio (BCAR), favorable liquidity and low underwriting leverage. The group benefits from having a favorable business profile due to its strong market position in the public housing sector, as well as a growing diversification of its business into the larger affordable housing market. The group's ERM is viewed as appropriate given the organization's strong risk-management capabilities, which support the risk profile and the expanding complexity of the HAI Group.

The FSR of A (Excellent) and the Long-Term ICRs of "a+" (Excellent) have been affirmed with positive outlooks for the following members of HAI Group: