HEMIC receives Rating of “A” (Excellent) from AM Best – 2024

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 Hawaii 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.

“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. 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.” – Martin J. Welch, Chief Executive Officer of HEMIC.

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.

“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.” – Jason Yoshimi, HEMIC President and CFO.