AM Best Ratings Update for Builders Mutual Insurance Group
AM Best has issued a Financial Strength Rating of A (Excellent) and a Long-Term Issuer Credit Rating of "a" (Excellent) to Builders Alliance Insurance Company, both maintaining a stable outlook. Concurrently, AM Best has downgraded the Long-Term Issuer Credit Ratings for Builders Mutual Insurance Company and Builders Premier Insurance Company from "a+" to "a" (Excellent) while affirming their Financial Strength Rating of A (Excellent). Both ratings carry stable outlooks, and together, these entities form the Builders Mutual Insurance Group, based in Raleigh, North Carolina.
AM Best attributes these ratings to Builders Mutual’s robust balance sheet, adequate operational performance, and effective enterprise risk management (ERM) practices. The downgrades in Long-Term Issuer Credit Ratings are tied to extended periods where operating results did not align with peer entities known for strong performance. Despite improvements in investment income and periods of profitable underwriting, these have not consistently translated into superior performance metrics.
The solid balance sheet of Builders Mutual is underscored by its risk-adjusted capitalization, which has consistently achieved the highest level as per Best’s Capital Adequacy Ratio (BCAR) through the end of 2025. Additional support is derived from conservative reserving, steady leverage, and favorable liquidity. The group's neutral business profile stems from its role as a multi-state, multiline insurer specializing in workers’ compensation insurance for the residential and commercial construction sectors. Predominantly active in North Carolina, Builders Mutual also operates in seven other southeastern states and the District of Columbia, endorsed by the North Carolina Home Builders Association.
The ERM framework at Builders Mutual is rated as appropriate, highlighting comprehensive governance and risk management practices. These include rigorous oversight and ongoing improvements in preparation for compliance with the Model Audit Rule.
This information is part of the Credit Ratings release available on AM Best’s website. For a detailed breakdown of each rating and related disclosures, visit AM Best’s Recent Rating Activity section. AM Best’s ratings and assessments adhere to guidelines outlined in the Guide to Best’s Credit Ratings and associated documents.
AM Best serves as a global credit rating agency, news publisher, and data analytics provider with a focus on the insurance industry. It operates in over 100 countries, with regional offices in several major international locations.