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FOR IMMEDIATE RELEASE
OLDWICK - DECEMBER 18, 2024 11:19 AM (EST)
AM Best has commented that the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Rating of a+ (Excellent) of Louisiana Workers’ Compensation Corporation (LWCC) (Baton Rouge, LA) are unchanged following the Dec. 18, 2024, announcement that it will acquire all of the outstanding shares of Prescient National Insurance Company (PNIC) (Charlotte, NC). The transaction is an all-cash transaction, which has received regulatory approval and is expected to close by year-end 2024.
The Credit Ratings (ratings) reflect LWCC’s balance sheet strength, which AM Best assesses as strongest, as well as its strong operating performance, limited business profile and appropriate enterprise risk management.
LWCC operates as a monoline workers’ compensation (WC) writer providing coverage in Louisiana. PNIC provides WC coverage in multiple states. It is expected that both companies will continue to operate as separate brands and entities despite some risk management oversight by LWCC.
AM Best does not expect the transaction to result in any material change to LWCC’s business operations
or rating fundamentals though acknowledging that its operating performance will benefit from premium growth and continued favorable loss ratios relative to the WC industry, which are reflected in its strong operating performance assessment.
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.