AM Best Affirms Credit Ratings of Employers Holdings, Inc. and Its Subsidiaries
December 11 2018 - 11:13AM
Business Wire
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 AM 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 AM 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 AM
Best press releases, please view Guide for Media - Proper
Use of Best’s Credit Ratings and AM Best Rating Action Press
Releases.
AM Best is a global rating agency and information provider
with a unique focus on the insurance industry. Visit www.ambest.com
for more information.
Copyright © 2018 by A.M. Best Rating
Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.
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version on businesswire.com: https://www.businesswire.com/news/home/20181211005664/en/
Jonathan Harris, CFA, FRM, CPCUSenior Financial
Analyst+1 908 439 2200, ext.
5771jonathan.harris@ambest.comorChristopher
SharkeyManager, Public Relations+1 908 439 2200, ext.
5159christopher.sharkey@ambest.comorJacqalene Lentz,
CPADirector+1 908 439 2200, ext.
5762jacqalene.lentz@ambest.comorJim PeavyDirector,
Public Relations+1 908 439 2200, ext.
5644james.peavy@ambest.com
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