Oldwick, NJ -(BusinessWire)- AM Best has revised the outlooks to positive from stable and affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of “a-” (Excellent) of Work First Casualty Company (Work First) (Delaware).
The Credit Ratings (ratings) reflect Work First’s balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management (ERM).
The positive outlooks recognize Work First’s consistent and profitable operating performance, which has outpaced composite peers in certain metrics, as well as business profile characteristics that have developed a strong and defensible presence in the temporary staffing niche.
Work First is a niche provider focused on writing workers’ compensation policies for temporary staffing companies, in business segments such as light manufacturing or office clerical, among others. The company is licensed in all 50 states and operates through long-term agency partnerships throughout the United States. Work First’s balance sheet strength is supported by the company’s strongest level of risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), prudent reserving and a conservative investment portfolio, while also acknowledging limited financial flexibility as a privately held stock company.
Work First has posted consistent operating profitability over the past five years, with positive income resulting from its underwriting operations, augmented by investment returns. Loss and loss adjustment expense ratios, as well as return on revenue and equity measures, outpace composite measures over the past five years. This is further evidence of Work First’s strong relationships with its producers, and the resulting quality business on its books. AM Best considers the company’s ERM capabilities as appropriate for the scale and scope of operations, and properly aligned with its stated risk profile.
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