OLDWICK, N.J.–(BUSINESS WIRE)–AM Best has assigned a Financial Strength Rating of A-
(Excellent) and a Long-Term Issuer Credit Rating of “a-” to Synergy Comp
Insurance Company (Synergy) (Sharon, PA). The outlook assigned to these
Credit Ratings (ratings) is stable.
The ratings reflect Synergy’s balance sheet strength, which AM Best
categorizes as very strong, as well as its strong operating performance,
limited business profile and appropriate enterprise risk management
(ERM).
Synergy was formed in 2005 and began writing workers’ compensation (WC)
in September 2006, with a focus on creating safer work environments
through the reduction of the frequency and severity of workplace
accidents while utilizing employee return-to-work programs and
establishing supervisor accountability.
Synergy’s risk-adjusted capitalization, as measured by Best’s Capital
Adequacy Ratio (BCAR), is categorized as strongest, reflective of
organic surplus growth achieved through strong operating performance,
which has benefited from sustained favorable reserve development
patterns over the long term that has driven retained earnings. Synergy’s
balance sheet strength is considered very strong and in addition to
these indicated positive factors, also considers the modestly elevated
net underwriting leverage measures and limited financial flexibility
operating as a privately held organization.
AM Best assesses Synergy’s operating performance as strong, as evidenced
by its average pre-tax return on revenue measures that have outperformed
the WC industry composite over the recent five and 10-year timeframe.
Synergy’s business profile assessment is limited, as the majority of
written premiums are written in Pennsylvania. As a monoline WC insurer,
the company’s limited business profile leaves it susceptible to
potential legislative, regulatory or judicial changes occurring in
Pennsylvania. ERM capabilities are considered appropriate for the
company’s risk profile.
While positive rating actions are unlikely over the near term, positive
rating actions could be taken on Synergy’s ratings if balance sheet
strength improves over time through retained earnings.
Key factors that could trigger negative rating actions on Synergy’s
ratings and outlooks include a weakening in underwriting performance or
operating earnings to a level not considered commensurate with strong
operating performance. Negative rating actions could occur if adverse
reserve development results in a weakening in operating performance or
risk-adjusted capitalization to a level not considered supportive of AM
Best’s individual building block assessments. Negative rating actions
also could occur if strong premium volume growth results in a reduction
in risk-adjusted capitalization to a level that is no longer supportive
of Synergy’s ratings.
This press release relates to Credit Ratings that have been published
on AM Best’s website. For all rating information relating to the release
and pertinent disclosures, including details of the office responsible
for issuing each of the individual ratings referenced in this release,
please see AM Best’s Recent
Rating Activity web page. For additional information
regarding the use and limitations of Credit Rating opinions, please view Understanding
Best’s Credit Ratings. For information on the proper media
use of Best’s Credit Ratings and AM Best press releases, please view Guide
for Media – Proper Use of Best’s Credit Ratings and AM Best Rating
Action Press Releases.
AM Best is a global rating agency and information provider with a
unique focus on the insurance industry. Visit www.ambest.com
for more information.
Copyright © 2019 by A.M. Best Rating Services, Inc. and/or its
affiliates. ALL RIGHTS RESERVED.
Contacts
Gordon McLean
Senior Financial Analyst
+1 908
439 2200, ext. 5304
[email protected]
Raymond Thomson, CPCU, ARe, ARM
Director
+1
908 439 2200, ext. 5621
[email protected]
Christopher Sharkey
Manager, Public Relations
+1
908 439 2200, ext. 5159
[email protected]
Jim Peavy
Director, Public Relations
+1 908
439 2200, ext. 5644
[email protected]
