A.M. Best Upgrades Ratings of Eastern Insurance Holdings, Inc. and Its ...
OLDWICK, N.J., Jun 08, 2010 (BUSINESS WIRE) -- A.M. Best Co. has upgraded the financial strength rating (FSR) to A (Excellent) from A- (Excellent) and issuer credit ratings (ICR) to "a" from "a-" of Eastern Alliance Insurance Group (EAIG) and its members. EAIG consists of Eastern Alliance Insurance Company (EAIC), Allied Eastern Indemnity Company (AEIC), Eastern Advantage Assurance Company (EAAC) and Employers Security Insurance Company (ESIC) (Indianapolis, IN), which operate under an intercompany pooling agreement. Concurrently, A.M. Best has upgraded the ICR to "bbb" from "bbb-" of the holding company, Eastern Insurance Holdings, Inc. (EIHI) [NASDAQ: EIHI]. The outlook for all ratings has been revised to stable from positive. All companies are domiciled in Lancaster, PA, unless otherwise specified.
The ratings recognize EAIG's strong operating results, excellent capitalization, conservative reserving practices and the financial flexibility afforded by EIHI. The cultivation of a loyal agency base within preferred territories has produced profitable growth as evidenced by the group's five-year average combined ratio, which outperforms the workers' compensation composite by a wide margin. The strong underwriting performance reflects management's commitment to maintain sound pricing, a proactive return to work program and utilization of "compromise and release" agreements. This approach has allowed EAIG to close claims more quickly and at a lower average cost than the typical workers' compensation writer.
