This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

A.M. Best Revises Outlook To Negative Of Employers Holdings Inc. And Its Subsidiaries

A.M. Best Co. has affirmed the financial strength rating of A- (Excellent) and issuer credit ratings (ICR) of “a-“ of Employers Insurance Company of Nevada (Reno, NV), Employers Compensation Insurance Company (Glendale, CA), Employers Preferred Insurance Company and Employers Assurance Company (both domiciled in Maitland, FL), collectively referred to as EMPLOYERS. Concurrently, A.M. Best has affirmed the ICR of "bbb-" of EMPLOYERS' publicly traded parent holding company, Employers Holdings Inc. (EHI) (Reno, NV) [NYSE: EIG]. The outlook for all ratings has been revised to negative from stable.

The affirmation of the ratings reflects EMPLOYERS’ supportive capitalization, historically strong operating performance and management's market expertise. The group also benefits from the financial flexibility afforded by EHI, which infused $70 million during the third quarter of 2012 into the operating companies in support of ongoing premium growth. A.M. Best expects the group’s underwriting performance will remain in line with or modestly outperform the workers’ compensation composite for the more recent accident years given management’s disciplined underwriting philosophy and prudent reserving practices.

Offsetting these positive rating factors and driving the revised outlook are the significant premium growth in the most recent calendar years, which has strained overall risk-adjusted capitalization and the emergence of modest adverse loss reserve development occurring on recent accident years. While EMPLOYERS’ calendar year operating results outperform its workers’ compensation composite peers, recent accident year results are more in line with the peer group averages. A.M. Best is concerned that the strong growth under challenging market conditions could result in deterioration of EMPLOYERS’ results over time. An additional offsetting rating factor is EMPLOYERS’ business concentration risk operating as a monoline workers’ compensation insurer with a relatively high concentration of premium volume in a select number of states.

A.M. Best will continue to monitor the performance of EMPLOYERS' expansion initiatives to ensure that premium growth and the accumulation of loss reserves do not further strain its capitalization and that overall operating results are achieved in accordance with A.M. Best’s expectations.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $93.24 0.00%
FB $117.81 0.00%
GOOG $701.43 0.00%
TSLA $211.53 0.00%
YHOO $36.94 0.00%


Chart of I:DJI
DOW 17,660.71 +9.45 0.05%
S&P 500 2,050.63 -0.49 -0.02%
NASDAQ 4,717.0940 -8.5450 -0.18%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs