{"id":400325,"date":"2020-12-15T15:00:13","date_gmt":"2020-12-15T20:00:13","guid":{"rendered":"http:\/\/www.marketnewsdesk.com\/?p=400325"},"modified":"2020-12-15T15:00:13","modified_gmt":"2020-12-15T20:00:13","slug":"am-best-revises-outlooks-to-stable-for-employers-holdings-inc-and-its-subsidiaries","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/am-best-revises-outlooks-to-stable-for-employers-holdings-inc-and-its-subsidiaries\/","title":{"rendered":"AM Best Revises Outlooks to Stable for Employers Holdings, Inc. and Its Subsidiaries"},"content":{"rendered":"

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AM Best Revises Outlooks to Stable for Employers Holdings, Inc. and Its Subsidiaries<\/b><\/p>\n

OLDWICK, N.J.–(BUSINESS WIRE<\/a>)–AM Best <\/b>has revised the outlooks to stable from positive and affirmed the Financial Strength Rating (FSR) of A- (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of \u201ca-\u201d of Employers Preferred Insurance Company and its pooled affiliates, collectively referred to as Employers Insurance Group(Employers). (See below for a detailed list of companies.) Concurrently, AM Best has revised the outlooks to stable from positive and affirmed the Long-Term ICR of \u201cbbb-\u201d and the indicative Long-Term Issue Credit Ratings (Long-Term IR) of Employers Holdings, Inc. (EHI) [NYSE:EIG], the publicly traded ultimate parent of Employers. All companies are headquartered in Reno, NV.\n<\/p>\n

\nThe Credit Ratings (ratings) reflect Employers\u2019 balance sheet strength, which AM Best categorizes as strongest, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management.\n<\/p>\n

\nThe ratings are supported by Employers\u2019 risk-adjusted capitalization, considered to be at the strongest level, as well as consistent operating earnings and significant expertise in the workers\u2019 compensation market. The ratings also reflect the financial flexibility afforded by its publicly traded parent, EHI. Employers maintains business concentration risk, operating as a monoline workers\u2019 compensation insurer focusing on small businesses engaged in low-to-medium hazard industries, with a relatively high concentration of premium volume in a select number of states. While this concentration subjects the company to heightened degree of economic, regulatory and judicial risks, this concern is mitigated partially by management\u2019s market expertise.\n<\/p>\n

\nThe revision of the outlooks to stable reflects the modest deterioration in the combined ratio year over year to be more in line with adequate performance metrics. Results have been impacted by a significant decrease in earned premiums and a minor increase in underwriting expenses. Although Employers continues to generate profitable results, there is negative pressure on workers\u2019 compensation premium from the ongoing impact of the COVID-19 pandemic. This is particularly apparent in their small business and hospitality niches in California. The change in the outlooks to stable also reflects the lingering uncertainty of the challenging macroeconomic environment.\n<\/p>\n

\nThe FSR of A- (Excellent) and the Long-Term ICR of \u201ca-\u201d have been affirmed with the outlooks revised to stable from positive for the following pooled subsidiaries of Employers Holdings, Inc.:\n<\/p>\n