AM Best Upgrades Credit Ratings of Work First Casualty Company

Business Wire

OLDWICK, N.J.--(BUSINESS WIRE)--
AM Best has upgraded the Financial Strength Rating to A (Excellent) from A- (Excellent) and the Long-Term Issuer Credit Rating to “a” (Excellent) from “a-” (Excellent) of Work First Casualty Company (Work First) (Wilmington, DE). The outlook of these Credit Ratings (ratings) has been revised to stable from positive.

The ratings reflect Work First’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 (ERM).

The upgrade of the ratings recognizes Work First’s consistent and profitable underwriting and operating performance, which has outpaced composite peers in most metrics. In addition, the company exhibits business profile characteristics that have helped it develop a strong and defensible presence in the temporary staffing niche.

Work First is a niche provider focused on writing workers’ compensation policies for temporary staffing companies, in business segments such as light manufacturing or office clerical, among others. The company is licensed in all 50 states and operates through long-term agency partnerships throughout the United States. Work First’s balance sheet strength is supported by the company’s strongest level of risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), prudent reserving, a robust reinsurance program, and a relatively conservative investment portfolio, while also acknowledging the limited financial flexibility as a privately held stock company.

Work First has posted consistent operating profitability over the past five years, with positive income resulting from its underwriting operations, augmented by investment returns. The company’s loss and loss adjustment expense ratios, as well as return on revenue and equity measures, outpace composite measures over the past five years. This is further evidence of Work First’s strong relationships with its producers, and the resulting quality business it continues to write and service. AM Best considers the company’s ERM capabilities as appropriate for the scale and scope of operations and properly aligned with its stated risk profile.

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.