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A.M. Best Affirms Ratings of Employers Holdings, Inc. and Its Subsidiaries and Revises Outlook to Stable

Employers Holdings, Inc. (NYSE:EIG) (EMPLOYERS®) todayannounced insurance rating bureau A.M. Best has affirmed the financial strengthrating of A- (Excellent) and issuer credit ratings (ICR) of "a-" ofEmployers HoldingsInc. and its four pooled property/casualty operating subsidiaries,Employers Insurance Co. ofNevada (EICN) (Nevada), Employers Compensation Insurance Co. (ECIC) (California),Employers Preferred InsuranceCo. (EPIC) and Employers Assurance Co. (EAC) (both of Florida).Additionally, A.M. Best revised the outlook to stable from negative.Concurrently, A.M. Best has affirmed the ICR of "bbb-" of EMPLOYERSparent holding company, Employers Holdings, Inc.

The affirmation of the ratings and the revision upward ofthe outlook reflects EMPLOYERS excellent risk-adjusted capitalization, rapidlyimproving operating earnings, and significant market expertise operating as aworkers' compensation writer. EMPLOYERS also benefits from the financialflexibility afforded by its publicly traded parent, Employers Holdings, Inc.(EHI). Improved underwriting margins in recent years reflect the improvedpricing flexibility through the use of multiple writing companies within astate, combined with ongoing underwriting initiatives, which has allowedmanagement to focus on underperforming classes of business as needed.

"Given the supportive capitalization of ourconsolidated group, strict underwriting guidelines and consistent underwritingstrategy, we are pleased that A.M. Best has again recognized EMPLOYERS strongoperating performance and market expertise by maintaining our A- (Excellent)rating," said Douglas Dirks, President and CEO of EMPLOYERS.