A.M. Best Upgrades Ratings of Premier Group Insurance Company

OLDWICK, N.J.--(BUSINESS WIRE)--A.M. Best Co. has upgraded the financial strength rating (FSR) to A- (Excellent) from B++ (Good) and issuer credit rating (ICR) to “a-” from “bbb+” of Premier Group Insurance Company (Premier) (Murfreesboro, TN). The outlook for these ratings has been revised to stable from positive.

The ratings reflect Premier’s excellent capitalization and liquidity, low leverage and conservative investment portfolio. The ratings also recognize Premier’s solid operating performance driven by strong underwriting results, which compare favorably to the workers’ compensation industry composite averages. The ratings also consider the financial benefits and enhanced business profile derived from Premier’s ultimate parent company, National HealthCare Corporation (NHC) [NYSE: NHC]. Premier has been able to leverage its monoline focus and its role within NHC to achieve consistently profitable underwriting results.

Partially offsetting these positive factors are the company’s relatively high retention per claim and limited scale and business diversification. While Premier has a stable source of business from NHC and is able to write business from third parties, its business volumes, growth opportunities and dividend policy are largely dependent on NHC’s strategies.

For Best’s Credit Ratings, an overview of the rating process and rating methodologies, please visit www.ambest.com/ratings.

The principal methodologies used in determining these ratings, including any additional methodologies and factors that may have been considered, can be found at www.ambest.com/ratings/methodology.

Founded in 1899, A.M. Best Company is a global full-service credit rating organization dedicated to serving the financial and health care service industries, including insurance companies, banks, hospitals and health care system providers. For more information, visit www.ambest.com.