OLDWICK, N.J.--(BUSINESS WIRE)--AM Best has affirmed the Financial Strength Rating (FSR) of A- (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of “a-” of Employers Preferred Insurance Company and its pooled affiliates, collectively referred to as Employers Insurance Group (Employers). (See below for a detailed list of companies). 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) remains positive.
The ratings reflect Employers’ 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.
Employers maintains business concentration risk operating as a mono-line workers’ compensation insurer with 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 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. Further positive rating action could occur should underwriting and operating results continue to improve and be sustained at a level that performs in line with higher rated peers.
The FSR of A- (Excellent) and the Long-Term ICR of “a-” have been affirmed with a positive outlook for the following pooled subsidiaries of Employers Holdings, Inc.:
- Employers Preferred Insurance Company
- Employers Compensation Insurance Company
- Employers Insurance Company of Nevada
- Employers Assurance Company
- Cerity Insurance Company
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