OLDWICK, N.J.--(BUSINESS WIRE)--
A.M. BestCo. has affirmed the financial strength rating
of A- (Excellent) and issuer credit rating of “a-” ofEastern Re Ltd.
S.P.C. (Eastern Re) (Grand Cayman, Cayman Islands). The outlook for
both ratings is stable.
The ratings recognize Eastern Re’s strategic affiliation with the
holding company, Eastern Insurance Holdings, Inc.(EIHI) [NASDAQ:
EIHI], its historically profitable operating results as well as its
sound stand-alone capitalization. These positive rating factors are
partially offset by Eastern Re’s exclusive reliance on EIHI for
production of all of its business, as well as the mono-line orientation
of Eastern Re, which primarily acts as a workers’ compensation reinsurer.
Eastern Re is a segregated portfolio company, or cell captive, whose
general cell is a wholly owned subsidiary of EIHI, which also indirectly
owns Eastern Alliance Insurance Company, Allied Eastern
Indemnity Company and Eastern Advantage Assurance Company,
all Pennsylvania-domiciled workers’ compensation insurance companies
that produce business through regional agents. These insurance
companies, which are the non-life risk-bearing entities of EIHI, provide
both fronting capabilities and reinsurance protection to Eastern Re.
Eastern Re also utilizes the expertise of Employers Alliance Inc., a
Pennsylvania-domiciled insurance services provider that acts as the
third party administrator and provides services for all of the cells of
Eastern Re.
Eastern Re issues preferred shares to 15 cell owners, which are agent or
group captives that purchase workers’ compensation coverage from EIHI.
These agent and group captives participate in the profits and losses of
the cell for which they are the owners. This dynamic provides added
incentive to the agent or group captive to prevent adverse selection for
the business being assumed by Eastern Re.
A.M. Best remains the leading rating agency of captive insurers rating a
wide variety of more than 200 captives in the United States and
throughout the world.
For current Best’s Credit Ratings and independent data on the captive
and alternative insurance market, please visit www.ambest.com/captive.
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
Gale Guerra, MBA, 908-439-2200, ext.
5069
gale.guerra@ambest.com
or
Steven
Chirico, CPA, 908-439-2200 ext. 5087
steven.chirico@ambest.com
or
Public
Relations
Rachelle Morrow, 908-439-2200, ext. 5378
rachelle.morrow@ambest.com
or
Jim
Peavy, 908-439-2200, ext. 5644
james.peavy@ambest.com