AM Best has revised the outlooks to positive from stable and affirmed the Financial Strength Rating (FSR) of A (Excellent) and the Long-Term Issuer Credit Rating (Long-Term ICR) of “a+” (Excellent) of Louisiana Workers’ Compensation Corporation (LWCC), based in Baton Rouge.
At the same time, AM Best has affirmed the FSR of A (Excellent) and the Long-Term ICR of “a” (Excellent) of Prescient National Insurance Company (Prescient National) (Charlotte, NC). The outlook of these Credit Ratings (ratings) is stable.
The ratings reflect LWCC’s balance sheet strength, which AM Best assesses as strongest, as well as its strong operating performance, limited business profile and appropriate enterprise risk management (ERM).
The revision of LWCC’s outlooks to positive reflects its dominant market position in Louisiana’s workers’ compensation (WC) segment, which is demonstrated by an average market share of 28% over the last five years. While maintaining this market position, LWCC has continued to generate consistent surplus gains and underwriting profits, which compare favorably to AM Best’s WC composite.
The positive outlooks consider AM Best’s expectation that LWCC will continue to demonstrate its integral nature to Louisiana’s WC market while maintaining risk-adjusted capitalization at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR), and with underwriting results that compare favorably to the WC composite. Furthermore, the recent acquisition of Prescient National expands LWCC’s geographic diversification, while improving its overall risk posture.
Topics
Trends
Talent
Workers’ Compensation
Louisiana
AM Best
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