LANCASTER, Pa., June 18, 2012 /PRNewswire/ -- Eastern Insurance Holdings, Inc. ("EIHI") (NASDAQ: EIHI) today announced that A.M. Best Company has affirmed its A (Excellent) financial strength rating and stable outlook for subsidiary Eastern Alliance Insurance Group ("EAIG"), a domestic casualty insurance group specializing in workers' compensation.
"A.M. Best's affirmation of the A (Excellent) rating is indicative of our consistently excellent operational performance, thoughtful geographic expansion plans and strong financial results during challenging insurance market conditions and uncertain economic times," said Michael Boguski, President and Chief Executive Officer of EIHI. "This affirmation validates the continued successful execution of our strategic business plan, the foundations of which are based on our strong relationships with agency partners and the delivery of quality service to their customers by our valued employees. I was particularly pleased with A.M. Best's recognition of our outperformance of the workers' compensation industry as a whole."
In its news release affirming the A (Excellent) rating, A.M. Best recognized EAIG's "strong operating results, loyal agency base, excellent capitalization, prudent reserving practices and the financial flexibility afforded by EIHI." The rating organization stated that EAIG's five-year average combined ratio "outperforms the workers' compensation composite by a significant margin," and highlights EAIG's "strong underwriting performance and its ability to close claims more quickly and at a lower average cost than the typical workers' compensation writer."
EAIG consists of Eastern Alliance Insurance Company, Allied Eastern Indemnity Company, Eastern Advantage Assurance Company and Employers Security Insurance Company, which operate under an intercompany pooling agreement. EAIG also consists of Employers Alliance, Inc. which provides third party administration services to EAIG, Eastern Re Ltd., SPC., an indirect wholly-owned subsidiary of EIHI, and other businesses and self-insured customers. Founded in 1997, EAIG specializes in providing workers' compensation products and services to businesses and self-insured clients. EAIG distributes its products through independent insurance agencies and has service offices in Pennsylvania, North Carolina, Indiana, Tennessee, and Virginia.EIHI operates through its subsidiaries a domestic casualty insurance group specializing in workers' compensation, third-party administration services and a segregated portfolio call reinsurance business. EIHI's Web address is www.eihi.com. Eastern Alliance's Web address is www.eains.com. FORWARD LOOKING STATEMENTS