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

OLDWICK, N.J. -- A.M. Best Co. has affirmed the financial strength rating of A- (Excellent) and issuer credit ratings (ICR) of "a-" of Employers Insurance Group (EMPLOYERS) and its two property/casualty pooling members, Employers Insurance Company of Nevada (EICN) and Employers Compensation Insurance Company (ECIC). Concurrently, A.M. Best has affirmed the ICR of "bbb-" of EMPLOYERS' parent holding company, Employers Holdings, Inc. (EHI) (Reno, NV) (NYSE: EIG). The outlook for all ratings has been revised to stable from positive.

These rating actions follow the acquisition of AmCOMP Incorporated (AmCOMP) (North Palm Beach, FL) (NASDAQ: AMCP) and its subsidiaries, AmCOMP Preferred Insurance Company (AmCOMP Preferred) and AmCOMP Assurance Corporation (AmCOMP Assurance), by EHI on October 31, 2008. Following approval from the proper regulatory authorities, AmCOMP Preferred and AmCOMP Assurance will participate in an intercompany pooling agreement with EICN and ECIC.

The affirmation of the ratings reflect the consolidated group's solid capitalization, strong operating performance and the prospective benefits from the integration of the operating entities of AmCOMP, which expands EMPLOYERS' geographic footprint. The consolidated group's favorable operating results reflect its strict underwriting discipline, conservative investment policy and prudent capital management. The consolidated group also benefits from the financial flexibility provided by its publicly traded parent, EHI. The revised outlook reflects the integration and execution risk of merging two companies with distinctive operating strategies.

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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.