October 26, 2026 by matray

AM Best has revised its outlook for Coverys Companies to stable from negative, citing improved operating performance, stronger earnings and surplus growth, while affirming the medical professional liability insurer's Financial Strength Rating of A (Excellent).

The rating agency also affirmed the Long-Term Issuer Credit Ratings of “a” (Excellent) for Medical Professional Mutual Insurance Co. and its affiliated companies, collectively known as Coverys, according to an Oct. 23 announcement.

The outlook revision reflects improved operating results in recent years and through the first half of 2026, along with AM Best's expectation that Coverys' future performance will generally align with medical professional liability insurers receiving an adequate operating performance assessment.

Although challenging conditions in the MPL market continue to pressure underwriting results, Coverys has benefited from consistent and growing net investment income, allowing the company to report positive pretax earnings in each of the past three years and through the first six months of 2026. Realized capital gains also have contributed significantly to earnings in recent years.

AM Best said these developments have improved the group's overall operating ratios and measures of profitability.

The rating agency assessed Coverys' balance sheet strength as very strong, its operating performance as adequate, its business profile as neutral and its enterprise risk management as appropriate.

Coverys continues to maintain the highest level of risk-adjusted capitalization, as measured by Best's Capital Adequacy Ratio. Improved operating results also have allowed the company to increase its surplus over the past three years and through the first half of 2026.

However, AM Best noted that persistent adverse development of prior-year loss reserves prompted it to lower Coverys' balance sheet strength assessment from strongest to very strong. The agency said it will continue monitoring the company's loss reserves and related developments.

Coverys ranked as the seventh-largest U.S. MPL insurer based on direct premiums written in 2025, according to AM Best.

The company's management remains focused on improving its core U.S. MPL business while diversifying operations through expansion of its accident and health insurance lines and international MPL presence.

AM Best also cited strengthened leadership across the organization and an established enterprise risk management framework as supporting the group's operations.

The ratings and revised outlooks apply to Medical Professional Mutual Insurance Co., ProSelect Insurance Co., Preferred Professional Insurance Co., Coverys Specialty Insurance Co., Coverys Risk Retention Group Inc., Coverys Limited and Coverys International Insurance Company Designated Activity Company.