AM Best has commented that the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Rating of a+ (Excellent) of Louisiana Workers’ Compensation Corporation (LWCC) (Baton Rouge, LA) are unchanged following the Dec. 18, 2024, announcement that it will acquire all of the outstanding shares of Prescient National Insurance Company (PNIC) (Charlotte, NC). The transaction is an all-cash transaction, which has received regulatory approval and is expected to close by year-end 2024.

The Credit Ratings (ratings) reflect LWCC’s balance sheet strength, which AM Best assesses as strongest, as well as its strong operating performance, limited business profile and appropriate enterprise risk management.

LWCC operates as a monoline workers’ compensation (WC) writer providing coverage in Louisiana. PNIC provides WC coverage in multiple states. It is expected that both companies will continue to operate as separate brands and entities despite some risk management oversight by LWCC.

AM Best does not expect the transaction to result in any material change to LWCC’s business operations or rating fundamentals though acknowledging that its operating performance will benefit from premium growth and continued favorable loss ratios relative to the WC industry, which are reflected in its strong operating performance assessment.

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