A.M. Best Affirms Ratings of Employers Holdings Inc. and Its Subsidiaries

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OLDWICK, N.J.--(BUSINESS WIRE)--A.M. Best Co. has affirmed the financial strength rating of A- (Excellent) and issuer credit ratings (ICR) of “a-” of Employers Insurance Group (EMPLOYERS) and its four property/casualty pooling members, Employers Insurance Company of Nevada (EICN), Employers Compensation Insurance Company (ECIC) (California), Employers Preferred Insurance Company (EPIC) and Employers Assurance Company (EAC) (both of Florida). Concurrently, A.M. Best has affirmed the ICR of “bbb-” of EMPLOYERS’ parent holding company, Employers Holdings Inc. (EHI) (NYSE: EIG - News). The outlook for all ratings is stable. All companies are domiciled in Reno, NV, unless otherwise specified.

The affirmation of the ratings reflects the consolidated group’s solid capitalization, strong operating performance, management’s market expertise and its conservative operating strategy. Additionally, the consolidated group’s favorable operating performance reflects its strict underwriting discipline, conservative investment policy and prudent capital management. EMPLOYERS also benefits from the financial flexibility provided by EHI.

These positive factors are somewhat offset by the consolidated group’s business concentration risk, operating as a monoline workers’ compensation insurer with a high concentration of premium volume in California and Florida, which exposes its operations to changes in local regulatory, economic and competitive environments. However, this is partially mitigated by the consolidated group’s continued geographic expansion and diversification efforts, which have been accelerated by its acquisition of AmCOMP Inc. (North Palm Beach, FL) in October 2008.

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.

Founded in 1899, A.M. Best Company is a global full-service credit rating organization dedicated to serving the financial and health care service industries, including insurance companies, banks, hospitals and health care system providers. For more information, visit www.ambest.com.

A.M. Best Co.
Analysts
Edward Keane, 908-439-2200, ext. 5291
edward.keane@ambest.com
or
Michelle Baurkot, 908-439-2200, ext. 5507
michelle.baurkot@ambest.com
or
Public Relations
Jim Peavy, 908-439-2200, ext. 5644
james.peavy@ambest.com
or
Rachelle Morrow, 908-439-2200, ext. 5378
rachelle.morrow@ambest.com