Acmat Cp Cl A Stock Price, News & Analysis

ACMAT CORP A (ACMTA) is associated with ACMAT Corporation, a finance and insurance sector company classified in the industry of direct property and casualty insurance carriers. According to available information, ACMAT Corporation is linked to ACSTAR Insurance Company, which operates in a specialized niche of the surety sector within the broader property and casualty insurance space.

AM Best, a credit rating agency focused on the insurance industry, has affirmed the Long-Term Issuer Credit Rating of ACMAT Corporation and the Financial Strength Rating and Long-Term Issuer Credit Rating of its wholly owned subsidiary, ACSTAR Insurance Company. These rating actions indicate that ACMAT Corporation functions as a parent company, while ACSTAR Insurance Company is the operating insurance subsidiary.

The ratings for ACSTAR Insurance Company reflect an assessment of very strong balance sheet strength, strong operating performance, a limited business profile and appropriate enterprise risk management. AM Best notes that ACSTAR maintains what it describes as the strongest level of risk-adjusted capitalization, based on its capital adequacy measures. The company’s underwriting approach is described as prudent and conservative, with an emphasis on discipline and expertise in its specialized surety niche.

According to AM Best’s analysis, ACSTAR’s management applies a conservative philosophy to both reserves and investments. This approach has supported consistent investment income, which in turn has contributed to operating profits. At the same time, the rating commentary highlights that ACSTAR’s premium volume can be volatile, influenced by conditions in the non-standard surety market and competitive dynamics in its specialty area.

AM Best has also observed that sizable stockholder dividends from ACSTAR have been used by the parent, ACMAT Corporation, for debt service and opportunistic stock repurchases. While these dividends have reduced policyholder’s surplus at ACSTAR, AM Best reports that the company’s risk-adjusted capitalization remains more than supportive of its balance sheet strength assessment.

Earlier AM Best commentary on ACMAT Corporation and ACSTAR Insurance Company also pointed to periods of declining premium volume, which were attributed in part to management’s selectivity in highly competitive market conditions and, during the height of the COVID-19 pandemic, to delays and halts in construction projects. These factors affected underwriting profits over several years. AM Best indicated that it would continue to monitor premium volume trends and market conditions when evaluating ACSTAR’s business profile and performance.

Within the context of direct property and casualty insurance carriers, ACMAT Corporation’s relationship with ACSTAR Insurance Company positions it in a specialized surety segment rather than a broad multi-line retail insurance model. The available information centers on capital strength, underwriting discipline, investment income and the impact of dividend practices between the subsidiary and the parent company.

ACMAT Corporation is referenced in AM Best reports as being based in Farmington, Connecticut, and ACSTAR Insurance Company is referenced as being based in Chicago, Illinois. The stock of ACMAT Corporation is identified in the AM Best releases as trading on the OTC market under the symbol ACMT, while ACMTA represents ACMAT CORP A. No additional operational details, product lists or customer segments are provided in the available sources beyond the description of ACSTAR’s role in a specialized surety niche.

Business focus and structure

ACMAT Corporation functions as a parent company in the finance and insurance sector, associated with direct property and casualty insurance activities through its wholly owned subsidiary, ACSTAR Insurance Company. The subsidiary’s operations in a specialized surety niche are central to the information available about the group’s insurance activities.

ACSTAR Insurance Company is characterized in AM Best’s analysis by very strong balance sheet strength and strong operating performance. Its business profile is described as limited, reflecting its focus on a specific surety specialty rather than a broad, diversified insurance platform. Enterprise risk management is assessed as appropriate for the nature and scale of its operations.

Capitalization, underwriting and investments

AM Best’s commentary emphasizes ACSTAR’s risk-adjusted capitalization, which it describes as at the strongest level under its capital adequacy framework. This capitalization supports the company’s rating profile, even in the presence of premium volatility and dividend payments to the parent company.

Management’s underwriting discipline and conservative approach to reserves are highlighted as key factors in ACSTAR’s performance. The company’s investment strategy, also described as conservative, has produced consistent investment income that supports operating profitability. These elements together underpin the assessment of strong operating performance for ACSTAR Insurance Company.

Premium volume and market conditions

The information provided by AM Best notes that ACSTAR’s premium volume has experienced volatility. In earlier commentary, premium declines were linked to management’s selectivity in competitive markets and to construction-related slowdowns during the height of the COVID-19 pandemic. In more recent commentary, volatility in premium volume is associated with changes in the non-standard surety market.

AM Best indicates that it monitors ACSTAR’s capital levels, premium trends and evolving market conditions to evaluate whether its assessments of balance sheet strength and operating performance remain appropriate over time.

Ratings and outlook

AM Best has affirmed the Long-Term Issuer Credit Rating of ACMAT Corporation and the Financial Strength Rating and Long-Term Issuer Credit Rating of ACSTAR Insurance Company, with stable outlooks. The stable outlooks reflect AM Best’s expectation that ACSTAR’s balance sheet strength and profitable operating results will be maintained, based on the factors described in its rating releases.

Position within the insurance sector

Within the finance and insurance sector and the industry of direct property and casualty insurance carriers, ACMAT Corporation is associated with a focused surety insurance operation through ACSTAR Insurance Company. The available information centers on capital adequacy, underwriting discipline, investment income and the relationship between the parent and its wholly owned subsidiary, rather than on a broad set of product lines or geographic markets.

Key points for investors and researchers

• ACMAT CORP A (ACMTA) is associated with ACMAT Corporation, which is in the finance and insurance sector and classified among direct property and casualty insurance carriers.
• ACMAT Corporation is the parent of ACSTAR Insurance Company, which operates in a specialized surety niche.
• AM Best has affirmed ratings for both ACMAT Corporation and ACSTAR Insurance Company, citing very strong balance sheet strength and strong operating performance at the subsidiary level.
• ACSTAR’s risk-adjusted capitalization is described as at the strongest level under AM Best’s capital adequacy framework.
• Management’s conservative approach to underwriting, reserves and investments supports consistent investment income and operating profits.
• Premium volume has shown volatility, influenced by conditions in the non-standard surety market and competitive dynamics.
• Dividend practices from ACSTAR to ACMAT have affected policyholder’s surplus, though risk-adjusted capitalization remains more than supportive of the current assessment.
• AM Best continues to monitor ACSTAR’s capital, premium trends and market conditions when evaluating its ratings and outlooks.