AM Best has revised its under review status for NASW Insurance Company (NASWIC), a captive insurer wholly owned by the National Association of Social Workers (NASW), shifting the outlook from developing to ‘negative’.
This change affects NASWIC’s financial strength rating of ‘A-’ (Excellent) and its long-term issuer credit rating of ‘a-’ (Excellent).
The ratings reflect NASWIC’s very strong balance sheet, strong operating performance, limited business profile, and appropriate enterprise risk management, according to AM Best.
The previous “under review with developing implications” status follows NASWIC’s separation from Preferra Insurance Company Risk Retention Group (Preferra RRG).
Management from both companies has requested separate assessments by AM Best, to be rated independently.
The rating agency states that 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 has filed a lawsuit against NASW and its subsidiaries NASW Assurance and NASWIC, alleging breach of contract concerning unpaid claims on social work liability policies previously reinsured by NASWIC.
NASWIC responded with a countersuit in December 2024, disputing the allegations and asserting its own claims against Preferra RRG and related parties.
AM Best says the ratings will remain under review with negative implications until the company’s stand-alone profile is fully evaluated.
