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For more than 30 years, Cabling Installation & Maintenance has provided useful, practical information to professionals responsible for the specification, design, installation and management of structured cabling systems serving enterprise, data center and other environments. These professionals are challenged to stay informed of constantly evolving standards, system-design and installation approaches, product and system capabilities, technologies, as well as applications that rely on high-performance structured cabling systems. Our editors synthesize these complex issues into multiple information products. This portfolio of information products provides concrete detail that improves the efficiency of day-to-day operations, and equips cabling professionals with the perspective that enables strategic planning for networks’ optimum long-term performance.

Throughout our annual magazine, weekly email newsletters and 24/7/365 website, Cabling Installation & Maintenance digs into the essential topics our audience focuses on.

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AM Best Downgrades Credit Ratings of Nonprofits Insurance Alliance Group’s Members

AM Best has downgraded the Financial Strength Rating (FSR) to A- (Excellent) from A (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICRs) to “a-” (Excellent) from “a+” (Excellent) of Nonprofits Insurance Alliance of California, Inc. (Santa Cruz, CA), National Alliance of Nonprofits for Insurance, Inc. and Alliance of Nonprofits for Insurance, Risk Retention Group, Inc. (both of West Brookfield, VT) which all are members of Nonprofits Insurance Alliance Group (NIA or the group). The outlook of the FSR has been revised to negative from stable, while the outlook of the Long-Term ICRs is negative.

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

The downgrading of these ratings reflects a decline in NIA’s level of risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), and the increased unfavorable development of prior-year loss reserves, which led to a material decline in surplus in 2024. The adverse reserve development was experienced across several lines of business including improper sexual misconduct liability, directors’ and officers’ liability and commercial auto liability, which were compounded by social inflation and higher jury verdicts. In addition, due to changes in the commercial insurance market over the last five years, the group experienced substantial growth in premium, which additionally pressured its underwriting leverage metrics and resulting BCAR score.

Over the last few years, NIA’s management team has undertaken numerous corrective actions aimed at improving results including the non-renewal of problematic business segments, significant rate increases, revised limits, increased deductibles, as well as changes and additions to staff. Given the extent of these actions, AM Best has altered its assessment of NIA’s business profile to neutral as these actions may have the potential for market disruption. Furthermore, AM Best expects that management’s initiatives will take time to reverse the negative trends, as well as for metrics to return to historical norms.

The negative outlook reflects AM Best’s concern over the deterioration in NIA’s operating performance in recent years. Prior to 2022, the group's underwriting and operating metrics maintained a high level of consistency; however, there has been deterioration in its metrics in more recent years driven by elevated loss and loss adjustment expenses.

Negative rating actions may occur if there is continued deterioration in NIA’s operating performance that is no longer in line with adequate performance metrics. Negative rating actions may also occur if there is continued significant adverse loss reserve development, which negatively impacts risk-adjusted capitalization or if the corrective actions taken by management fail to improve and stabilize the group’s profitability metrics. While unlikely in the intermediate term, positive rating actions could occur if the group exhibits sustained organic surplus growth that is able to absorb variability in reserve development.

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.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

Copyright © 2025 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

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