OLDWICK, New Jersey – (COMMERCIAL THREAD) –AM Best revised the outlook from stable to positive and confirmed the financial strength rating of A- (excellent) and the long-term issuer credit rating of “a-” (excellent) of Synergy Comp Insurance Company (Synergy Comp) (Sharon, PA).
Credit ratings (ratings) reflect the strength of Synergy Comp’s balance sheet, which AM Best considers to be very strong, as well as its strong operational performance, limited business profile and proper management of business risks. The positive outlook reflects the company’s very strong balance sheet, driven by continued strong operating earnings over the long term, and the expectation that organic policyholder surplus growth will continue in the near term.
Synergy was formed in 2005 and began drafting workers’ compensation in September 2006 with a focus on creating safer work environments by reducing the frequency and severity of workplace accidents, while using employee return-to-work programs and establishing supervisory accountability.
Synergy’s risk-adjusted capitalization, as measured by Best’s capital adequacy ratio (BCAR), is valued at the highest level, reflecting organic surplus growth achieved through strong operating performance that benefits from business models. development of favorable and sustained reserves and generated retained earnings. Although the strength of Synergy’s balance sheet is considered very strong, the assessment takes into account the limited financial flexibility operating as a private organization.
Synergy’s operating performance is rated as strong, as evidenced by its average pre-tax return on revenue measures which outperformed the industry composite of Workers’ Compensation in recent five-year periods. and ten years. The assessment of Synergy’s business profile is limited as the majority of written premiums are written in Pennsylvania. As a monoline workers’ compensation insurer, its limited business profile potentially exposes the company to legislative, regulatory or judicial changes occurring in the states in which it operates. Enterprise risk management capabilities are considered appropriate given the scale, scope and complexity of the business.
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