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Employers Holdings, Inc. (NYSE: EIG) (EMPLOYERS) today announced insurance rating agency A.M. Best affirmed the financial strength rating of A- (Excellent) and issuer credit ratings (ICR) of “a-“ of Employers Insurance Group and its four pooled property/casualty operating subsidiaries, Employers Insurance Company of Nevada (EICN) (Nevada), Employers Compensation Insurance Company (ECIC) (California), Employers Preferred Insurance Company (EPIC) and Employers Assurance Company (EAC) (both of Florida) and revised the outlook to negative from stable. Concurrently, A.M. Best has affirmed the ICR of “bbb-“of EMPLOYERS’ parent holding company, Employers Holdings, Inc.
Douglas D. Dirks, President and CEO of Employers stated, “We are pleased that A.M. Best has once again recognized EMPLOYERS strong operating performance and market expertise and that we are maintaining our A- (Excellent) ratio in the face of what A.M. Best recently observed in its November 12, 2012 Special Report as significantly challenging market conditions.”
Dirks added, “Going into 2013, we feel positive about our business strategy. We are disappointed with the negative outlook assigned to us. Our significant growth in 2011 and 2012 was part of a strategic plan to recover in excess of 30 percent decline in net written premium since 2008 that resulted from the recession and soft pricing in the market. Relative to reserves, as we have previously stated, our analysis of total reserves has shown modest adverse development for accident years 2009 through 2011, completely offset by aggregate favorable development in accident years preceding 2008.”
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. 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 Employers Holdings, Inc.