OLDWICK, N.J.--(BUSINESS WIRE)--
A.M. Best Co. has affirmed the financial strength rating (FSR) of
A- (Excellent) and issuer credit ratings (ICR) of "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 affirmed the ICR of "bbb-" of the holding
company, Eastern Insurance Holdings, Inc. (EIHI) (NASDAQ: EIHI).
The outlook for all ratings is positive. All companies are domiciled in
Lancaster, PA unless specifically noted.
The ratings recognize EAIG's strong operating results, excellent
capitalization and the financial flexibility of EIHI. EAIG maintains
focused underwriting initiatives, prudent reserving practices and
aggressive claims management, which combined with the cultivation of a
loyal agency base, have allowed the group to produce profitable growth
as evidenced by combined ratios, which outperform the workers'
compensation composite average by a wide margin and internally generate
surplus.
Partially offsetting these positive factors is EAIG's product
concentration, which potentially exposes it to increased risk of
regulatory or legislative changes. In addition, adverse development
isolated to EIHI's run-off specialty reinsurance segment, Eastern Re,
required a reallocation of capital within the organization to strengthen
the run-off operation.
Additionally, A.M. Best has affirmed the FSR of A- (Excellent) and ICR
of "a-" of Eastern Life and Health Insurance Company (Eastern
Life and Health). The outlook for both ratings is stable.
The affirmation of the ratings for Eastern Life and Health reflects
EAIG's agreement to guarantee the liabilities of Eastern Life and
Health, as well as its maintenance of a favorable level of risk-adjusted
capital, despite having paid large dividends recently to the parent.
Eastern Life and Health writes group dental, disability, life and vision
insurance products for employers located principally in the mid-Atlantic
and southeastern United States.
For Best's Ratings, an overview of the rating process and rating
methodologies, please visit www.ambest.com/ratings.
The principal methodologies used in determining these ratings, including
any additional methodologies and factors that may have been considered,
can be found at www.ambest.com/ratings/methodology.
Founded in 1899, A.M. Best Company is a global full-service credit
rating organization dedicated to serving the financial and health care
service industries, including insurance companies, banks, hospitals and
health care system providers. For more information, visit www.ambest.com.
Source: A.M. Best Co.
Contact: A.M. Best Co.
Analysts
Gordon McLean, 908-439-2200, ext. 5304
gordon.mclean@ambest.com
or
Michelle Baurkot, 908-439-2200, ext. 5507
michelle.baurkot@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