|[November 29, 2012]
A.M. Best Affirms A- (Excellent) Rating of Employers Holdings, Inc. and its Subsidiaries and Revises Outlook from Stable to Negative
RENO, Nev. --(Business Wire)--
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
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 grop'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.
The revision of the ratings outlook was driven by the significant
premium growth of the most recent calendar years, and the emergence of
modest adverse loss development on recent accident years. "While we
share A.M. Best's concerns about the workers' compensation market
generally, we are more optimistic about our opportunities for profitable
growth going forward than is A.M. Best. We know our market place well
and we continue our focus and discipline as we serve the workers'
compensation needs of America's small business."
For Best's Credit Ratings, an overview of the rating process and rating
methodologies, please visit www.ambest.com/ratings.
The principal methodologies used in determining these ratings, including
any additional methodologies and factors that may have been considered,
can be found at www.ambest.com/ratings/methodology.
About Employers Holdings, Inc.
Employers Holdings, Inc. is headquartered in Reno, Nevada and listed on
the New York Stock Exchange (NYSE: EIG). EMPLOYERS is a holding company
with subsidiaries that are specialty providers of workers' compensation
insurance and services focused on select small businesses engaged in
low-to-medium hazard industries. The company, through its subsidiaries,
operates coast to coast. Insurance is offered by Employers Insurance
Company of Nevada, Employers Compensation Insurance Company, Employers
Preferred Insurance Company, and Employers Assurance Company, all rated
A- (Excellent) by A.M. Best Company. Additional information can be found
About A.M. Best Company
Founded in 1899, A.M. Best Company is the world's oldest and most
authoritative insurance rating and information source. For more
information, visit www.ambest.com.
Copyright © 2012 EMPLOYERS. All rights reserved.
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