February 5, 2026 by matray

AM Best has affirmed the Financial Strength Rating of A+ (Superior) and the Long-Term Issuer Credit Rating of “aa-” (Superior) of MLMIC Insurance Co. The outlook of these Credit Ratings (ratings) is stable.

The ratings reflect MLMIC’s balance sheet strength, which AM Best assesses as strongest, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management. The ratings benefit from the financial support provided by MLMIC’s direct parent company, National Indemnity Co. (NICO), which is ultimately owned by Berkshire Hathaway Inc.

MLMIC has a long track record of favorable reserve development and adequate underwriting returns. In the last seven years, the company’s net operating results have been skewed by the 100% loss portfolio transfer (LPT), and 85% quota share agreements with NICO, which were executed post MLMIC’s acquisition by NICO in 2018. As a result, favorable reserve developments related to prior accident years covered by the LPT (for all business written prior to the acquisition) do not benefit MLMIC’s underwriting results. The pace of favorable reserve development was slowed by the impact of the pandemic on the New York court system, which reduced the speed that claims were closed, as well as delayed the recognition of favorable reserve developments in more recent accident years not covered under the LPT. As a result, the company’s net underwriting results in the last seven years have not yet benefited from the same degree of reserve releases seen in previous years.

Nonetheless, gross underwriting and total operating results, as well as consistent cash from operations, remain in line with historical trends and support the current operating performance assessment of adequate. Over time, AM Best expects that MLMIC’s calendar-year underwriting results will continue to improve and approximate the company’s historically stronger results.

MLMIC’s insurance portfolio is concentrated in the medical professional liability (MPL) line of business. The company underwrites risks only within New York, which is one of the nation’s most challenging and litigious markets for MPL. As a mitigating factor, management has been able to operate successfully through underwriting cycles while maintaining MLMIC’s leading market position within New York. In addition, risk management capabilities have proven to be appropriate for the company’s risk profile.