AM Best

AM Best Revises Outlooks to Positive for Employers Holdings, Inc. and Its Subsidiaries


Joni Cerbone
Senior Financial Analyst
+1 908 439 2200, ext. 5726

Rosemarie Mirabella
+1 908 439 2200, ext. 5892
Christopher Sharkey
Manager, Public Relations
+1 908 439 2200, ext. 5159

Al Slavin
Senior Public Relations Specialist
+1 908 439 2200, ext. 5098


OLDWICK - DECEMBER 14, 2022 12:34 PM (EST)
AM Best has revised the outlooks to positive from stable and affirmed the Financial Strength Rating (FSR) of A- (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of “a-” (Excellent) 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 outlook to positive from stable and affirmed the Long-Term ICR of “bbb-” (Good) 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.

The Credit Ratings (ratings) reflect Employers’ balance sheet strength, which AM Best assesses as strongest, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management.

The ratings are supported by Employers’ risk-adjusted capitalization, considered to be at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR). The group’s capital position reflects the group’s consistent operating performance and a diversified, well-managed investment portfolio that provides a steady stream of net investment income. The ratings also reflect the financial flexibility afforded by its publicly traded parent, EHI. Given the sustained improvement in underwriting results, combined with consistent investment income, the group has reported sustained improvement in pre-tax earnings. Employers maintains modest business concentration risk, operating as a monoline workers’ 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’s significant market expertise.

The positive outlooks reflect the expectation that the group will continue to generate stronger-than-average earnings compared with the workers’ compensation composite while maintaining strongest levels of risk-adjusted capitalization and growing their national presence. Further positive rating action could occur should underwriting and operating results continue to be sustained at a level that performs in line with higher-rated peers.

The FSR of A- (Excellent) and the Long-Term ICRs of “a-” (Excellent) have been affirmed, with the outlooks revised to positive from stable, for the following pooled subsidiaries of Employers Holdings, Inc.:

  • Employers Preferred Insurance Company

  • Employers Compensation Insurance Company

  • Employers Insurance Company of Nevada

  • Employers Assurance Company

  • Cerity Insurance Company

The following indicative Long-Term IRs under the shelf registration have been affirmed, with the outlooks revised to positive from stable:

Employers Holdings, Inc.—

—“bbb-” (Good) on senior unsecured debt

—“bb+” (Fair) on subordinated debt

—“bb” (Fair) on preferred debt

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 Guide to Best’s Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City.

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