AM Best Upgrades Credit Ratings of Hospitals Insurance Company, Inc.; Affirms Credit Ratings of Doctors Company Insurance Group’s Members
August 31, 2023by
AM Best upgraded the Financial Strength Rating (FSR) to A (Excellent) from A- (Excellent) and the Long-Term Issuer Credit Rating (Long-Term ICR) to “a” (Excellent) from “a-” (Excellent) of Hospitals Insurance Company, Inc. (HIC). Concurrently, AM Best has affirmed the FSR of A (Excellent) and the Long-Term ICR of “a+” (Excellent) of the members of Doctors Company Insurance Group. The outlook of these Credit Ratings is stable. (See below for a list of TDC’s companies.)
The ratings reflect HIC’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 (ERM).
The ratings upgrade for HIC reflects the implicit support from its parent organization, TDC. HIC has been fully integrated into the group’s operations and is viewed as one of TDC’s four strategic business units. The company is critical to the group’s strategy and is a material contributor to the group’s premiums and earnings. Furthermore, the parent has indicated its willingness to provide explicit support if needed.
The ratings of TDC reflect the group’s balance sheet strength, which AM Best assesses as strongest, as well as its adequate operating performance, neutral business profile and appropriate ERM. TDC’s balance sheet strength continues to be supported by the strongest level of risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR). In addition, the group benefits from consistently favorable loss reserve development and a solid liquidity position. The group’s underwriting performance has shown improvement in recent years, with rate actions taken amid hardening market conditions within the medical professional liability (MPL) insurance segment. TDC maintains a strong market position as the second largest MPL writer in the United States, based on 2022 direct premiums written. Further, an appropriate ERM program is in place with a well-defined framework and risk management capabilities that are closely aligned with the group’s risk profile.
The FSR of A (Excellent) and the Long-Term ICRs of “a+” (Excellent) have been affirmed for the following members of the Doctors Company Insurance Group:
- The Doctors Company, An Interinsurance Exchange
- TDC National Assurance Company
- TDC Specialty Insurance Company
- TDC Special Risks Insurance Company
- The Doctors Company Risk Retention Group, a Reciprocal Exchange