AM Best Revises Under Review Status to Negative for Credit Ratings of NASW Insurance Company

Business Wire

OLDWICK, N.J.--(BUSINESS WIRE)--
AM Best has revised the implications of the under review status to negative from developing for the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of “a-” (Excellent) of NASW Insurance Company (NASWIC) (Washington, D.C.).

The Credit Ratings (ratings) reflect NASWIC’s balance sheet strength, which AM Best assesses as very strong, as well as its strong operating performance, limited business profile and appropriate enterprise risk management.

The under review with developing implications status was based on NASWIC’s separation from Preferra Insurance Company Risk Retention Group (Preferra RRG). Management of both entities requested to be rated on a stand-alone basis by AM Best. The revised implications reflect the uncertainty regarding NASWIC’s prospective business plans to operate on a stand-alone basis as well as the pending litigation with Preferra RRG. Preferra RRG announced a lawsuit against National Association of Social Workers (NASW) and its wholly owned subsidiaries NASW Assurance, Inc. (ASI) and NASWIC alleging breaches of contracts related to outstanding claims on social work policies in which NASWIC was the reinsurer. A counter lawsuit was filed by NASWIC in December 2024 disputing the allegations made by Preferra RRG, including NASWIC’s own claims against Preferra RRG and related parties.

The ratings for NASWIC will remain under review with negative implications until AM Best evaluates the ratings of the company on a stand-alone basis.

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. For more information, visit www.ambest.com.