AM Best has revised the outlooks to stable from negative and affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of “a-” (Excellent) of Vault E&S Insurance Company (Little Rock, AR) and Vault Reciprocal Exchange (St. Petersburg, FL), collectively referred to as Vault Insurance Group (Vault).

The Credit Ratings (ratings) reflect Vault’s balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management (ERM).

The revised outlooks to stable from negative reflect AM Best’s expectation that the strategic shift Vault undertook following volatility in underwriting results in 2021 and 2022 will continue to benefit the group’s results. As a result of past challenges, Vault strengthened and expanded its senior management team and non-renewed admitted products that did not have technical rate adequacy, leaning more heavily on its excess and surplus offering. As a result of these actions, Vault reported both underwriting and overall net income in 2023 and 2024. Additionally, in 2025, the group is on track to report a third straight year of income, despite the impact of the California wildfires, which significantly impacted the group’s results in the first quarter of 2025.

Vault’s balance sheet strength assessment of very strong, is supported by the strongest levels of risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR). The group’s surplus position has continued to improve and was supplemented by capital contributions from the parent in earlier years. Management’s corrective actions, which gained traction in more recent periods, led to stabilization in operating results and supports the adequate assessment. The business profile assessment of limited reflects the niche portfolio focused on high-net-worth clients, primarily offering homeowners coverage. AM Best assesses Vault’s ERM as appropriate for the risk profile, with the board and senior management leading governance of the program.

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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