AM Best Revises Outlooks to Negative for Physicians Insurance Mutual Group’s Members

November 21, 2025 by matray

AM Best has revised the outlooks to negative from stable and affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Ratings of “a-” (Excellent) of Physicians Insurance A Mutual Co. and its reinsured subsidiary, Physicians Insurance RRG, Inc. (Burlington, VT).

The Credit Ratings (ratings) reflect PI’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 negative outlooks reflect AM Best’s expectation of continued pressure on PI’s operating performance over the intermediate term. Over the most recent five-year period, underwriting losses have continued due to increased claims costs and adverse prior-year development. PI’s return metrics and operating ratios underperformed the medical professional liability peer composite average. Management has implemented various corrective actions to improve underwriting results; however, the actions have yet to bolster underwriting profitability.

Negative rating action could occur if anticipated improvements in PI’s underwriting and overall operating performance fail to materialize, resulting in a continuation of performance measures that fall below that of its peers.