News Details

A.M. Best Upgrades and Assigns Ratings to Eastern Life and Health Insurance Company

June 18, 2007

OLDWICK, N.J.--(BUSINESS WIRE)--

A.M. Best Co. has upgraded the financial strength rating (FSR) to A- (Excellent) from B++ (Good) and assigned an issuer credit rating (ICR) of "a-" to Eastern Life and Health Insurance Company (Eastern Life and Health) (Lancaster, PA). The outlook for the both ratings is stable. Eastern Life and Health is a wholly-owned subsidiary of Eastern Insurance Holdings, Inc. (NASDAQ: EIHI) (Pennsylvania).

Eastern Life and Health's FSR upgrade reflects the parent's agreement to guarantee the liabilities of Eastern Life and Health, as well as the maintenance of a continued favorable level of risk-based capital. Presently, Eastern Life and Health maintains a very strong risk-based capital ratio and has demonstrated improved underwriting, which has contributed to recent improved loss ratios across its core business lines. Eastern Life and Health continues to strive to achieve capital mass through cross sales opportunities with other subsidiaries of its parent, as well as maximizing upon its own distribution network. A.M. Best will continue to monitor the operating and capital management activities of Eastern Life and Health as it strategically grows its business.

Eastern Life and Health writes group dental, disability and life insurance products for employers located principally in the mid-Atlantic and southeastern United States. The company markets its insurance products using both general agency and broker relationships.

For Best's Ratings, an overview of the rating process and rating methodologies, please visit www.ambest.com/ratings.

Founded in 1899, A.M. Best Company is a full-service credit rating organization dedicated to serving the financial services industries, including the banking and insurance sectors. For more information, visit www.ambest.com.

Source: A.M. Best Co.

Contact: A.M. Best Co. Analysts Kathryn Steffanelli, 908-439-2200, ext. 5063 kathryn.steffanelli@ambest.com or Carl Austin, 908-439-2200, ext. 5500 carl.austin@ambest.com or Public Relations Jim Peavy, 908-439-2200, ext. 5644 james.peavy@ambest.com or Rachelle Morrow, 908-439-2200, ext. 5378 rachelle.morrow@ambest.com