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FOR IMMEDIATE RELEASE
OLDWICK - APRIL 23, 2019 09:00 AM (EDT)
AM Best has revised the outlooks to positive from stable and affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of “a-” of Chesapeake Employers’ Insurance Company (Chesapeake) (Towson, MD).
The Credit Ratings (ratings) reflect Chesapeake’s balance sheet strength, which AM Best categorizes as strongest, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management (ERM).
The positive outlooks reflect the continued strength of the balance sheet, which is supported by the strongest level of risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), low underwriting leverage and strong liquidity. The balance sheet is supported further by consistently favorable loss reserve trends and a five-year compound annual growth rate in surplus of 17.7%. AM Best expects the company’s balance sheet to remain in the strongest category with leverage ratios that remain conservative. In addition, although Chesapeake is limited to writing workers compensation in Maryland, its business profile reflects its importance in providing coverage in the state, as evidenced by its market share of approximately 22%. Chesapeake maintains an appropriate ERM program that reflects annual risk assessments that outline risk appetite and tolerances, as well as mitigation strategies.
This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Understanding Best’s Credit Ratings. For information on the proper media use of Best’s Credit Ratings and AM Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and AM Best Rating Action Press Releases.
AM Best is a global rating agency and information provider with a unique focus on the insurance industry.