AM Best Revises Outlook to Positive for Excess Reinsurance Underwriters

Global credit rating agency AM Best has upgraded its outlook on Excess Reinsurance Underwriters Inc., shifting its perspective from stable to positive in a notable development for the Woodbury, New Jersey-based managing general underwriter.

Alongside the revised outlook, AM Best has officially affirmed the Performance Assessment of Excess Re at PA-2, which is categorized as "Excellent." This rating reflects a thorough evaluation of the company’s operational capabilities, market standing, and internal controls across multiple dimensions of its business.

According to AM Best’s official commentary, the PA-2 assessment underscores several core strengths of the organization. Specifically, the rating agency highlighted Excess Re’s excellent underwriting capabilities, excellent governance and internal controls, excellent financial condition, excellent organizational talent, and the exceptional depth and breadth of its professional relationships within the insurance and reinsurance sectors.

Excess Reinsurance Underwriters operates as a specialized managing general underwriter with a primary focus on medical stop loss insurance. Serving a diverse variety of entities, the company provides vital risk-transfer solutions and administrative support across all 50 states, positioning itself as a prominent player in the medical stop loss space.

The decision by AM Best to revise the company’s outlook to positive is heavily rooted in Excess Re’s favorable underwriting metrics. In its evaluation, the rating agency noted that the managing general underwriter has consistently outperformed its industry peers in key performance indicators. Furthermore, the company’s long-standing track record of operational stability, combined with its consistently favorable profitability margins, serves as a primary foundation supporting the positive outlook.

Underwriting performance remains a cornerstone of Excess Re’s market success. AM Best pointed to the company’s favorable loss ratios relative to industry competitors as clear evidence of its superior underwriting discipline. A critical driver behind this sustained performance is Excess Re’s proprietary underwriting system. This advanced technological infrastructure supports full-lifecycle policy servicing, giving the firm the operational agility needed to handle customized implementations efficiently while seamlessly rolling out new or expanded coverage options to its clients.

Beyond its underwriting prowess, AM Best’s assessment places significant weight on the company’s robust financial condition. The rating agency described Excess Re’s financial standing as excellent, pointing to a multi-year track record of profitable financial results. These results are bolstered by steady and reliable sources of income, ensuring that the firm maintains a strong balance sheet capable of navigating shifting macroeconomic and insurance industry cycles.

The consistency of these financial results, paired with sustained favorable profitability margins, is viewed by AM Best as a vital positive factor in shaping the overall assessment of the company’s financial health. By maintaining disciplined financial management alongside its technological and operational innovations, Excess Re continues to reinforce its standing in the competitive medical stop loss insurance market.

As the insurance industry adapts to evolving regulatory, economic, and healthcare landscapes, the positive outlook from AM Best signals growing confidence in Excess Re’s strategic direction, operational execution, and long-term viability as a premier managing general underwriter in the United States reinsurance market.