AM Best has assigned a Financial Strength Rating (FSR) of A (Excellent) and a Long-Term Issuer Credit Rating (Long-Term ICR) of “a” (Excellent) of Builders Alliance Insurance Company. The outlook assigned to these Credit Ratings (ratings) is stable. At the same time, AM Best has downgraded the Long-Term ICRs to “a” (Excellent) from “a+” (Excellent) and affirmed the FSR of A (Excellent) of Builders Mutual Insurance Company and Builders Premier Insurance Company. The outlook of the Long-Term ICR has been revised to stable from negative and the FSR is stable. These companies are collectively referred to as Builders Mutual Insurance Group (Builders Mutual) (Raleigh, NC).

The ratings reflect Builders Mutual’s balance sheet strength, which AM Best assesses as strongest, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management (ERM).

The downgrade of the Long-Term ICRs reflects an extended period of operating results that are no longer commensurate with peers whose operating performance is assessed as strong. Operating results reflect sustained, increasing levels of investment income augmented to a lesser extent by profitable underwriting performance in some years. The group has grown and diversified to where it is assessed within the commercial casualty composite group. Through year-end 2025, the group underperforms the commercial casualty composite averages in multiple metrics, including underwriting expense, combined ratio, operating ratio and return metrics.

Builders Mutual’s balance sheet strength assessment is supported by its risk-adjusted capitalization, which has remained at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR), at year-end 2025. Builders Mutual’s balance sheet strength is further complemented by additional supportive qualitative and quantitative factors, such as conservative reserving practices, consistent leverage metrics and favorable liquidity.

The neutral business profile reflects Builders Mutual’s position as a multistate, multiline carrier that offers insurance products designed for residential and commercial construction markets, with workers’ compensation being its largest line of business. Builders Mutual remains a leading workers’ compensation insurer in its home state of North Carolina. Builders Mutual’s footprint encompasses seven other states, mostly in the Southeastern United States, along with the District of Columbia. The group also carries an endorsement from North Carolina Home Builders Association to provide all commercial lines of insurance coverage to its members.

Builders Mutual’s ERM assessment of appropriate reflects the group’s established risk framework, which includes governance committees that focus on all aspects of risk emergence, identification, assessment, mitigation and monitoring. The group’s ERM process continues to be enhanced as the group develops stronger controls in preparation for Model Audit Rule compliance.

This press release relates to Credit Ratings that have been published on AM 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 AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best's Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

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