AM Best Affirms HEMIC's Rating of "A" (Excellent)

AM Best Affirms HEMIC’s Rating of “A” (Excellent)
with “Stable” Outlook

NEWS RELEASE – AM Best has affirmed the Financial Strength Rating of “A” (Excellent) and the Long-Term Issuer Credit Rating of “a” (Excellent) for Hawaii Employers’ Mutual Insurance Company, Inc. (HEMIC) and returned both outlooks to “Stable”. HEMIC is the largest provider of workers’ compensation insurance in Hawaiʻi and has maintained an “A” rating from AM Best every year since they were first rated in 2007.

This year’s credit ratings rationale reflects HEMIC’s balance sheet strength, which AM Best assessed as strongest, as well as its adequate operating performance, limited business profile, and appropriate enterprise risk management (ERM).

The “stable” outlook reflects the steady improvement in HEMIC’s operating results since 2022. These results followed unique COVID relief programs that HEMIC provided to its policyholders.

Said Martin J. Welch, Chief Executive Officer of HEMIC, “Our stable and strong financial position empowers us to deliver best-in-class service to Hawaiʻi employers and their workers as well as invest in creating innovative products and services to meet our policyholders’ emerging needs.”

Reflecting on HEMIC’s mission, he continued, “We were created over 25 years ago as a local, mutual insurance company committed to helping Hawaiʻi employers run safe and productive businesses. We remain steadfast in our pledge to keep our financial promises forever.”

HEMIC’s balance sheet strength assessment is supported by its risk-adjusted capitalization, which has remained at the strongest level as measured by Best’s Capital Adequacy Ratio (BCAR) at year-end 2023. Other balance sheet strength considerations include strong liquidity measures, favorable leverage ratios, a comprehensive reinsurance program and a low-risk investment profile.

HEMIC’s ERM assessment of appropriate reflects the company’s established risk management framework with stated risk tolerances, limits, controls, and capital adequacies as targets.

Jason Yoshimi, HEMIC President and CFO, said, “HEMIC has pursued a conservative, disciplined capital management strategy paired with strategic diversification to enable a stable, resilient financial foundation. Recent years’ investment in our core systems and Cloud-based platform has provided customized infrastructure to support operating efficiencies, new product development, and the continued growth of our enterprise.”

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 Hawaiʻi’s leading workers’ compensation insurance company, caring for nearly 7,000 businesses and 75,000 workers across the Hawaiian Islands. 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, Inc. (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 claim services to self-insured and captive entities.

To learn more about the HEMIC Family of Companies, please visit www.HEMIC.com.