Ratings bureau A.M. Best Company has improved its outlook on Majestic Insurance Company, a wholly-owned subsidiary of Embarcadero Insurance Holdings, Inc., from stable to positive, affirming the secure financial strength rating of B++ (Very Good).

According to AM Best, the rating reflects the insurer's profitable operating results over the last five-year period, improving capitalization and the company's expertise within its specialty workers' compensation insurance product offering.

A.M. Best says in a press release that the positive outlook indicates that Majestic's financial and market trends are favorable relative to its current rating level and if continued, the insurer may earn another rating upgrade.