April 1, 2024 by matray

AM Best has removed from under review with developing implications and affirmed the Financial Strength Rating (FSR) of A (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICRs) of “a” (Excellent) of certain members of Curi Insurance Group (Curi). Concurrently, AM Best has removed from under review with developing implications and downgraded the Long-Term ICRs to “a” (Excellent) from “a+” (Excellent) and affirmed the FSRs of A (Excellent) of Medical Mutual Insurance Company of North Carolina and its wholly owned subsidiary, Medical Security Insurance Company. Both companies are domiciled in Raleigh, NC and also members of Curi. The outlook assigned to all of these Credit Ratings (ratings) is stable. (Please see below for the list of Curi members and ratings.)

The ratings reflect Curi’s balance sheet strength, which AM Best assesses as strongest, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management (ERM).

These ratings were previously placed under review with developing implications in February 2023, following the announcement that Curi Holdings, Inc. and Constellation, Inc. (Constellation) had entered a definitive merger agreement. Effective Oct. 1, 2023, the merger closed, with Curi Holdings, Inc. as the surviving entity. Following the merger, the subsidiary members that comprised Constellation Insurance Group and Curi Holdings Group are now viewed as one AM Best rating unit, Curi Insurance Group.

The group’s balance sheet strength assessment is supported by its risk-adjusted capitalization being at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR), which reflects the group’s moderate underwriting leverage, high quality of capital, conservative investment portfolio and adequate loss reserve position. The balance sheet strength assessment is further bolstered by adequate liquidity and a reinsurance program supported by highly rated participants to help protect the group’s surplus and earnings. Additionally, some financial flexibility exists as members of the group are also members of both the Federal Home Loan Bank of Des Moines and Atlanta. The ultimate parent, Curi Holdings, Inc., has a neutral rating impact on the ratings of the merged insurance companies with more than $2 billion of consolidated assets and generating nearly $400 million in revenue, serving more than 50,000 physicians, healthcare providers and organizations across the United States as of year-end 2023.

The group’s operating performance remains in line with its peer group composite. Despite some deterioration in underwriting results in recent years, results remain profitable, bolstered by investment income, which is a significant contributor to earnings. Consolidated underwriting results have lagged the industry composite in more recent years due to several large problematic accounts and unfavorable reserve development, which has been impacted in part by delayed settlement of COVID-19 period claims. Non-renewal of problematic accounts and re-underwriting of higher risks, as well as pricing adjustments and synergies expected throughout 2024, are projected to lead to improved underwriting results. AM Best expects the group’s prospective operating performance to benefit from the enhanced scale and geographic diversification following the merger. The ratings are also supported by the group’s adequate ERM as governance and oversight have been merged across all insurance operations for the combined organization.

The stable outlooks reflect AM Best’s expectation that the ongoing strategic initiatives implemented by management will drive stable operating performance over the intermediate term, while the group maintains the strongest balance sheet strength assessment and risk-adjusted capitalization.

The FSR of A (Excellent) and the Long-Term ICRs of “a” (Excellent) have been removed from under review with developing implications and affirmed with a stable outlook assigned for the following members of Curi Insurance Group:

• UMIA Insurance, Inc.


• MMIC Insurance, Inc.


• Arkansas Mutual Insurance Company


• MMIC Risk Retention Group, Inc.

The Long-Term ICRs have been downgraded to “a” (Excellent) from “a+” (Excellent) and the FSRs of A (Excellent) affirmed and removed from under review with developing implications with a stable outlook assigned for the following members of Curi Insurance Group:

• Medical Mutual Insurance Company of North Carolina


• Medical Security Insurance Company