AM Best Affirms Credit Ratings of ACMAT Corporation and ACSTAR Insurance Company

FEBRUARY 11, 2026 09:16 AM (EST)

AM Best Affirms Credit Ratings of ACMAT Corporation and ACSTAR Insurance Company

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FOR IMMEDIATE RELEASE

OLDWICK - FEBRUARY 11, 2026 09:16 AM (EST)
AM Best has affirmed the Long-Term Issuer Credit Rating (Long-Term ICR) of "bbb" (Good) of ACMAT Corporation (ACMAT) (Farmington, CT) [OTC Market: ACMT]. Concurrently, AM Best has affirmed the Financial Strength Rating of A (Excellent) and the Long-Term ICR of "a" (Excellent) of ACMAT's wholly owned subsidiary, ACSTAR Insurance Company (ACSTAR) (Chicago, IL). The outlook of these Credit Ratings (ratings) is stable.

The ratings reflect ACSTAR's balance sheet strength, which AM Best assesses as very strong, as well as its strong operating performance, limited business profile and appropriate enterprise risk management.

The ratings consider ACSTAR's strongest level of risk-adjusted capitalization, as measured by Best's Capital Adequacy Ratio (BCAR), as well as management's disciplined underwriting and expertise within its niche segment of the surety sector. Management takes a conservative approach to both reserves and investments, generating consistent investment income that has bolstered operating profits. Partially offsetting these positive rating factors is the volatility in ACSTAR's premium volume over several years, driven by changes in the non-standard surety market. In addition, sizable stockholder dividends paid for debt service and opportunistic stock repurchases by ACMAT, compressed policyholder's surplus. Nevertheless, ACSTAR's level of risk-adjusted capitalization remains more than supportive of its balance sheet strength assessment, and prospectively softening dividend demands will alleviate the pressure on surplus. AM Best will continue to closely monitor ACSTAR's underwriting trends, as well as its level of capital and evolving market conditions to ensure that its limited business profile and strong operating performance assessments remain appropriate.

The stable outlooks reflect ACSTAR's very strong balance sheet strength and the expectation of continued profitable operating results in the near term.

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 Activityweb 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 (BCR), Best's Performance Assessments (PA), Best's Preliminary Credit Assessments (PCA) 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.