Oldwick, NJ -(BusinessWire)- AM Best has affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of “a-” of Employers Insurance Company of Nevada, Employers Compensation Insurance Company, Employers Assurance Company and Employers Preferred Insurance Company, collectively referred to as the Employers Insurance Group (Employers). Concurrently, AM Best has affirmed the Long-Term ICR of “bbb-” of Employers Holdings, Inc. (EHI) [NYSE:EIG], the publicly traded ultimate parent of Employers. All companies are headquartered in Reno, NV. The outlook of these Credit Ratings (ratings) is positive.
The ratings reflect Employer’s balance sheet strength, which AM Best categorizes as strongest, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management.
The ratings are supported by Employers’ risk-adjusted capitalization, considered to be at the strongest level, improving operating earnings and significant market expertise operating as a workers’ compensation writer. The ratings also reflect the financial flexibility afforded by its publicly traded parent, EHI. Improved underwriting margins in recent years reflect the pricing flexibility afforded to Employers through its use of multiple writing companies, combined with ongoing underwriting initiatives focused on underperforming classes of business. Partially offsetting these positive rating factors are Employers’ narrow business focus, as it operates as a monoline workers’ compensation insurer with a relatively high concentration of premium volume in a select number of states. While this concentration subjects the group to heightened degrees of economic, regulatory and judicial risks, this concern is mitigated partially by management’s market expertise.
Continuation of the positive outlook reflects Employers’ improving levels of risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), and continued improvement in underwriting and operating performance, partially offset by a limited business profile.
This press release relates to Credit Ratings that have been published on A.M. 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 A.M. Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Understanding Best’s Credit Ratings. For information on the proper media use of Best’s Credit Ratings and A.M. Best press releases, please view Guide for Media – Proper Use of Best’s Credit Ratings and A.M. Best Rating Action Press Releases.
A.M. Best is the world’s oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com.
Copyright © 2018 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.