Oldwick, NJ -(BusinessWire)- A.M. Best has upgraded the issuer credit ratings to “a+” from “a” and affirmed the financial strength rating of A (Excellent) of Eastern Alliance Insurance Company, Allied Eastern Indemnity Company and Eastern Advantage Assurance Company (collectively referred to as the Eastern Alliance Insurance Group) (EAIG) (Lancaster, PA) and Eastern Re Ltd., SPC (Eastern Re) (Grand Cayman, Cayman Islands). The outlook for all ratings is stable.
The ratings of EAIG recognize its supportive risk-adjusted capitalization, strong underwriting and overall operating performance and its well-developed business profile. EAIG is highly regarded as a workers’ compensation specialty company in select states within the Mid-Atlantic, Southeast, Midwest and Gulf South regions of the United States. All underwriting risk retained by the members of EAIG is pooled among the group’s members. EAIG cedes its Alternative Market program business into the segregated portfolio structure of Eastern Re.
Eastern Re’s ratings recognize its overall satisfactory stand-alone capitalization, historically profitable operating results and strategic affiliation with EAIG. The company shares in the risks underwritten by EAIG through inter-company reinsurance, as well as sharing common senior management.
EAIG and Eastern Re are indirect subsidiaries of their publicly traded ultimate parent, ProAssurance Corporation (ProAssurance) [NYSE:PRA]. All of the ratings benefit from the implicit and explicit support and the added financial strength and flexibility afforded by ProAssurance.
Partially offsetting these positive rating factors are the risks inherent with the companies’ product line and geographic concentration in workers’ compensation, mainly in Pennsylvania. These concerns are partially mitigated by management’s expertise in this line of business and ongoing geographic expansion initiatives.