Announcements

NEWS RELEASE — AM Best has affirmed the Financial Strength Rating of “A” (Excellent) and the Long-Term Issuer Credit Rating of “a” for Hawaii Employers' Mutual Insurance Company (HEMIC), the largest provider of workers’ compensation insurance in Hawai`i. HEMIC has maintained an A rating from AM Best every year since they were first rated in 2007.

The rating rationale by AM Best refers to HEMIC’s balance sheet strength, adequate operating performance, limited business profile and appropriate enterprise risk management.

Concurrent with the rating affirmation, AM Best moved HEMIC’s rating outlook to negative, based on the company’s recent operating performance relative to their peers.

Said Martin J. Welch, Chief Executive Officer of HEMIC, “AM Best’s affirmation of our rating is a validation of HEMIC’s financial strength and commitment to Hawai`i’s businesses and workers. Our capital position is stronger today than at any time in our history. Our recent operating performance, relative to other workers’ compensation insurers, reflects the intentional decisions we made to invest in our digital future and to help our policyholders in a critical time of need.

“During Hawai`i’s COVID-impacted economic slowdown, HEMIC returned premium to help insureds defray their business expenses, we continued to pay policyholder dividends despite our own falling premium revenue, and we chose not to furlough any of our employees, thereby maintaining HEMIC’s service delivery at the highest level – all decisions we knew would negatively impact our income statement. And, if we had it to do over, we would make those same decisions again.”

Added Jason Yoshimi, HEMIC’s President and Chief Financial Officer, “It is because of our superior financial strength that we were able to take such actions during an unprecedented crisis. HEMIC was built for times like these.

“We have every confidence that, as our local economy improves and our employer customers get back on their feet, our operating result will return to normal as well. That is what long-term performance is all about.”

Welch concluded, “Our financial strength has never been better. We are well-positioned and look forward to keeping our financial promises to Hawai`i for many years to come.”

Founded in 1899, AM Best is the largest credit rating agency in the world specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries. For more information visit www.ambest.com.

About HEMIC

HEMIC is the State of Hawai`i’s leading workers’ compensation insurance company, caring for more than 6,600 businesses and 75,000 workers across the Hawaiian Islands. HEMIC is rated “A” (Excellent) for financial strength by A.M. Best. An expert in safety, HEMIC helps employers prevent workplace injuries as well as care for injured workers.

HEMIC has two wholly owned subsidiaries to help businesses with their additional insurance needs:  Employers’ Protective Insurance Company (EPIC) provides temporary disability insurance (TDI) and HEMIC Insurance Managers, Inc. (HIMI) brokers other lines of commercial business insurance, offers risk management consulting services, and provides multiline third-party administrator services to self-insured entities and captive insurers.

To learn more about the HEMIC family of companies, please visit www.HEMIC.com.