AM Best changes NASWIC ratings outlook to negative

AM Best has revised the implications of the under review status from developing to negative for the financial strength rating of A- and the long-term issuer credit rating of “a-” (Excellent) of Washinbgton DC-based NASW Insurance Company (NASWIC).

According to the rating agency the ratings reflect NASWIC’s balance sheet strength, which AM Best assesses as very strong, as well as its strong operating performance, limited business profile and appropriate enterprise risk management.

AM Best said: “The under review with developing implications status was based on NASWIC’s separation from Preferra Insurance Company Risk Retention Group (Preferra RRG). Management of both entities requested to be rated on a stand-alone basis by AM Best. The revised implications reflect the uncertainty regarding NASWIC’s prospective business plans to operate on a stand-alone basis as well as the pending litigation with Preferra RRG. Preferra RRG announced a lawsuit against National Association of Social Workers (NASW) and its wholly owned subsidiaries NASW Assurance, Inc. (ASI) and NASWIC alleging breaches of contracts related to outstanding claims on social work policies in which NASWIC was the reinsurer. A counter lawsuit was filed by NASWIC in December 2024 disputing the allegations made by Preferra RRG, including NASWIC’s own claims against Preferra RRG and related parties.”

The ratings for NASWIC will remain under review with negative implications until AM Best evaluates the ratings of the company on a stand-alone basis.

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