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A.M. Best Affirms Ratings of Eastern Re Ltd. S.P.C. CONTACTS:
FOR IMMEDIATE RELEASE OLDWICK, NEW JERSEY, U.S.A., Apr. 25, 2008—A.M. Best Co. has affirmed the financial strength rating (FSR) of A- (Excellent) and issuer credit rating (ICR) of “a-”of Eastern Re Ltd. S.P.C. (Eastern Re) (Grand Cayman, Cayman Islands). The outlook for both ratings is stable. The ratings recognize Eastern Re’s strategic affiliation with Eastern Alliance Insurance Group (EAIG) (Lancaster, PA), its consistently profitable operating results as well as its sound stand-alone capitalization. These positive rating factors are partially offset by Eastern Re’s exclusive reliance on EAIG for production of all of its business as well as the mono-line orientation of Eastern Re, which primarily acts as a workers’ compensation reinsurer. Eastern Re is a segregated portfolio company, or cell captive, whose general cell is a wholly owned subsidiary of Eastern Insurance Holdings, Inc., a Pennsylvania holding company, which also owns Eastern Alliance Insurance Company, Allied Eastern Indemnity Company and Eastern Advantage Assurance Company, all Pennsylvania-domiciled workers’ compensation insurance companies that produce business through approximately 54 regional agents. These insurance companies, which are the non-life risk bearing entities of EAIG, provide both fronting capabilities and reinsurance protection to Eastern Re. Eastern Re also utilizes the experience and expertise of Employers Alliance Inc., a Pennsylvania-domiciled insurance services provider, which acts as the third party administrator and provides services for all of the cells of Eastern Re. EAIG’s FSR is A- (Excellent) and ICR is “a-”with a positive outlook. A.M. Best remains the leading rating agency of captive insurers rating a wide variety of more than 200 captives in the United States and throughout the world. For current Best’s Ratings and independent data on the captive and alternative insurance market, please visit www.ambest.com/captive. Founded in 1899, A.M. Best Company is a global full-service credit rating organization dedicated to serving the financial and health care service industries, including insurance companies, banks, hospitals and health care system providers. For more information, visit www.ambest.com. ### |
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