AM Best Revises Outlooks to Stable for Hawaii Employers’ Mutual Insurance Company, Inc.

SEPTEMBER 27, 2024 11:15 AM (EDT)

AM Best Revises Outlooks to Stable for Hawaii Employers' Mutual Insurance Company, Inc.

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FOR IMMEDIATE RELEASE

OLDWICK - SEPTEMBER 27, 2024 11:15 AM (EDT)
AM Best has revised the outlooks to stable from negative and affirmed the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Rating of "a" (Excellent) of Hawaii Employers' Mutual Insurance Company, Inc. (HEMIC) (Honolulu, HI).

The Credit Ratings (ratings) reflect HEMIC's balance sheet strength, which AM Best assesses as strongest, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management (ERM).

The revision of the rating outlooks to stable from negative reflect HEMIC's improved operating results since 2022, and AM Best's expectation that HEMIC will maintain its strongest level balance sheet assessment while continuing to sustain its improved operating results.

HEMIC's balance sheet strength assessment is supported by its risk-adjusted capitalization, which has remained at the strongest level as measured by Best's Capital Adequacy Ratio (BCAR) at year-end 2023. Other balance sheet strength considerations include strong liquidity measures, favorable leverage ratios, a comprehensive reinsurance program and a low-risk investment profile.

HEMIC's limited business profile reflects its mono-line, mono-state profile. HEMIC's purpose is to provide workers' compensation coverage to Hawaiian employers who have been unable to find coverage in the voluntary market, serving as the market of last resort. HEMIC provides coverage and actively pursues policyholders in the voluntary market in addition to providing coverage in the guaranteed market.

HEMIC's ERM assessment of appropriate reflects the company's established risk management framework with stated risk tolerances, limits, controls and capital adequacies as targets.

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.