Financial News

AM Best Affirms Credit Ratings of Employers Holdings, Inc. and Its Subsidiaries

AM Best has 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 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. The outlook of these Credit Ratings (ratings) is positive. All companies are headquartered in Henderson, NV.

The 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 positive outlooks reflect AM Best’s expectation that the group will continue to generate stronger-than-average earnings compared with the workers’ compensation composite while maintaining the strongest level of risk-adjusted capitalization. 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 ratings are supported by Employers’ risk-adjusted capitalization, which is at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR), despite the return of significant capital in the form of an extraordinary distribution to its ultimate publicly traded parent, EHI, in 2022. The group’s capital position reflects consistent underwriting performance and a diversified, well-managed investment portfolio that provides a steady stream of net investment income. Premiums continue to rebound to pre-pandemic levels as payrolls continue to increase.

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 has improved in recent years, it subjects the company to heightened degree of economic, regulatory and judicial risks. This concern is mitigated partially by management’s significant market expertise.

The FSR of A- (Excellent) and the Long-Term ICRs of “a-” (Excellent) have been affirmed, with positive outlooks, 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 positive outlooks:

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. For more information, visit

Copyright © 2023 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.


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