Announcements

AM Best has affirmed the Financial Strength Rating of "A" (Excellent) and the Issuer Credit Rating of “a” (Stable) for Hawaii Employers’ Mutual Insurance Company, Inc. (HEMIC), the largest provider of workers’ compensation insurance in Hawaiʻi. The negative outlook factors in reserve development, underwriting volatility, and the economic investment environment. HEMIC has maintained an A rating from AM Best every year since they were first rated in 2007.

AM Best’s rating rationale refers to HEMIC’s balance sheet strength of “Strongest” with favorable and consistent scores, adequate operating performance, limited business profile and appropriate enterprise risk management, and acknowledges policyholder dividends, and pandemic-related programs and impacts.

Said Martin J. Welch, Chief Executive Officer of HEMIC, “As a local, mutual insurance company whose mission is to care for Hawaiʻi’s businesses and workers, we hold a long-term view and are resolute in our commitment to serve policyholders with excellence long into the future. HEMIC’s mission and core values communicate our promise to Hawaiʻi, while our financial strength ensures we deliver on it.

“AM Best’s affirmation of our A rating reflects continued financial stability. Our capital position remains strong and our operating performance, which was uniquely affected by the relief programs for policyholders that we provided during the pandemic, continues to improve.”

Jason Yoshimi, HEMIC President and CFO, added, “HEMIC’s stability is enabled by careful, conservative capital management, and strategic diversification that has expanded and complements our product and service offerings to policyholders while strengthening our financial foundation.

“This year, HEMIC completed the transformation of our core systems to a Cloud-based platform, which will be leveraged to build process efficiency, enhance services, and power enterprise growth.”

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.