Ryan Crawford named new president and Chief Executive Officer of Constellation
March 18, 2021
Constellation, Inc. announced yesterday that Ryan Crawford, currently Constellation’s senior vice president of insurance operations, will succeed Bill McDonough as the company’s president and chief executive officer effective June 1, 2021. Crawford has also been elected to Constellation’s board of directors.
McDonough, currently Constellation’s president and chief executive officer, will retire and resign his seat on the board of directors effective June 1.
“I am delighted that the board of directors has named Ryan as my successor and believe he is the ideal choice,” McDonough said. “He has been a great leader and a valued partner in building and advancing Constellation’s long-term strategy. Since joining Constellation in 2017, he has held a variety of positions, helped build talent and capabilities, and strengthened our business. His passion and commitment to our mission and values will serve policyholders well.”
“This announcement follows a well-planned and thoughtful succession process,” said Sue Crook, MD, Constellation board chairman. “Ryan Crawford is a proven leader and we are excited about his ability to continue to help Constellation deliver on its vision, strategy and unwavering service to our customers. The board looks forward to working with Ryan in his new capacity.
“At the same time, we want to extend our profound thanks to Bill for his exceptional performance as CEO over the last 13 years. It has been a period of significant growth, change, and strategic development for our company. During Bill’s tenure, Constellation has grown from $134 million to more than $183 million in written premium, with our state presence increasing from 10 states to 50. It has developed from a single insurance entity to a mutual holding company with multiple brands (MMIC, UMIA, Arkansas Mutual) and entities (MMIC Risk Retention Group, Inc., Constellation New Ventures, LLC, Constellation Captive Solutions, LLC, Aspect Re SP). With Bill’s leadership, we have nearly doubled our consolidated assets, to more than $976 million, and increased our members’ surplus by 128%, to $406 million.”
AM Best Affirms Credit Ratings of ProAssurance Group Members and ProAssurance Corp.
March 17, 2021
AM Best has affirmed the Financial Strength Rating (FSR) of A (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of "a+" of the members of ProAssurance Group. The outlook of the FSR is stable while the outlook of the Long-Term ICR is negative. Concurrently, AM Best has affirmed the Long-Term ICR of "bbb+" and the Long-Term Issue Credit Ratings (Long-Term IR) of ProAssurance Corporation (PRA) (headquartered in Birmingham, AL). The outlook of the Credit Ratings (ratings) is negative. All companies are indirect subsidiaries of PRA. (See below for a detailed listing of the companies’ ratings.)
The ratings of ProAssurance Group reflect its balance sheet strength, which AM Best assesses as strongest, as well as its adequate operating performance, favorable business profile and appropriate enterprise risk management (ERM).
Risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), remains at the strongest level, but has declined in recent years. The group’s adequate operating performance assessment reflects a deterioration in underwriting performance in its medical professional liability (MPL) business in recent accident years and calendar years with results that no longer outperform industry averages. The management team has taken corrective actions, including the implementation of significant rate increases and re-underwriting the entire book of business. The group’s 2020 operating results improved over 2019; however, the effects of a large national MPL account activating a tail policy while non-renewing with ProAssurance largely muted this improvement. The same large national MPL account contributed $51 million in losses to ProAssurance’s 2019 results.
The ratings also consider the ProAssurance Group’s market position as one of the leading MPL insurers in the United States, as well as its diversification across multiple disciplines, geographic areas and in its other lines of business. The planned NORCAL Group (NORCAL) acquisition will likely increase the group’s operational scale and strengthen its market position in the long term. These ratings also acknowledge the depth and breadth of the group’s ERM programs and policies.
The negative Long-Term ICR outlook reflects the decline in risk-adjusted capitalization, as measured by BCAR, driven by lower underwriting profits and reduced embedded equity in loss reserves. Uncertainty with regards to reserve development, as well as the execution risks associated with the planned acquisition of NORCAL, which is expected to close in the second quarter of 2021, and the ensuing integration of the acquired entity also are factors in the negative outlook.
The FSR of A (Excellent) and the Long-Term ICRs of "a+" have been affirmed with a stable FSR outlook and a negative Long-Term ICR outlook for the following members of the ProAssurance Group:
- ProAssurance Casualty Company
- ProAssurance Indemnity Company, Inc.
- ProAssurance Specialty Insurance Company, Inc.
- Medmarc Casualty Insurance Company
- Noetic Specialty Insurance Company
- Podiatry Insurance Company of America
- ProAssurance American Mutual, A Risk Retention Group
- Allied Eastern Indemnity Company
- Eastern Advantage Assurance Company
- Eastern Alliance Insurance Company
The following Long-Term IRs have been affirmed with negative outlooks:
--"bbb+" on $250.0 million 5.30% 10-year senior unsecured notes, due 2023
The following indicative Long-Term IRs under the shelf registration have been affirmed with negative outlooks:
-- "bbb+" on senior unsecured debt
-- "bbb" on senior subordinated debt
-- "bbb-"on preferred stock
LAMMICO Named a ‘Best and Brightest Company to Work For’
March 5, 2021
LAMMICO was named one of the “101 Best and Brightest Companies to Work For” by the National Association for Business Resources, which recognized the winning companies in The Wall Street Journal. The 101 national winners were identified as organizations that deliver exceptional human resource practices and an impressive commitment to their employees. The companies display a commitment to excellence in operations and employee enrichment that leads to increased productivity and financial performance.
Potential honorees were assessed by an independent research firm and scored based on regional data of company performance and a set standard across the nation. Organizations were evaluated on categories such as communication, work-life balance, employee education, diversity, recognition, retention and more.
The “Best and Brightest Companies to Work For” winners will be honored at the Illuminate Business Summit on March 24-26 in Dallas. During the Illuminate Business Summit, LAMMICO and the other honored companies will be celebrated for demonstrating exceptional innovative human resource practices and setting high standards for all businesses.
“Receiving this national honor is a testament to the LAMMICO culture and the dedication of its employees,” said J. Michael Conerly, MD, LAMMICO president and chief executive officer. “I couldn’t be more proud of this team and this company and all we do to serve the healthcare providers we insure.”
NORCAL Mutual Begins Solicitation of Policyholders in Proposed Demutualization
March 5, 2021
The board of directors for NORCAL Mutual has begun solicitation of policyholders to vote on NORCAL’s plan to convert from a mutual company to a stock company and to elect the form of payment they wish to receive if the conversion occurs.
On Feb. 20, 2020, ProAssurance Corp. and NORCAL Group announced the signing of a definitive agreement under which NORCAL would become a part of ProAssurance in a $450 million transaction following its demutualization. The demutualization and the acquisition agreement are mutually contingent and subject to required regulatory and policyholder approvals.
As part of this process, ProAssurance’s transfer agent Computershare has mailed documentation and materials to NORCAL’s eligible policyholders. Further, ProAssurance has begun solicitation of policyholders who elect to receive NORCAL stock in the conversion, asking them to respond to the tender offer and agree to sell those shares on the terms of the offer. Policyholders who elect NORCAL stock and tender it to ProAssurance will receive their allocated share of the $450 million cash transaction proceeds and be eligible for a share of Contingent Consideration in an amount of up to $150 million, depending upon development of NORCAL’s ultimate net losses between Dec. 31, 2020, and Dec. 31, 2023.
Eligible NORCAL policyholders can visit https://norcalconversion.com using login credentials provided in the documents mailed by Computershare, wherein they will be able to cast their vote on NORCAL’s Plan of Conversion and elect their desired form of payment.
The general public may visit https://www.norcal-group.com/pra for copies of documents and more information about the proposed transaction.
Clifton P. Render Joins Integris Group as New Director of Information Technology
March 4, 2021
Integris Group, formerly named CMIC, announced that Clifton P. Render has joined the company as its new director of information technology.
“Clif’s experience working with enterprise architecture within the MPL industry will be a great asset to the company,” said Michael G. Roque, chief operating officer of Integris Group. “His success in managing various projects, while balancing both business and IT goals, will prove beneficial to our ongoing technology initiatives. We look forward to his insights into the department and having his strategic leadership within the company.”
Render has more than 20 years of information technology experience. Most recently, he served as director of enterprise architecture and corporate development at ProAssurance Corp. Prior to that, Render held a variety of leadership positions in the technology field, spanning a variety of industries, including multiple companies in the healthcare sector.