AM Best Affirms ‘Superior’ Credit Ratings of Members of MedPro Group

June 30, 2021 by matray

AM Best has affirmed the Financial Strength Rating of A++ (Superior) and the Long-Term Issuer Credit Ratings of “aa+”(Superior) of the members of MedPro Group. These Credit Ratings apply to The Medical Protective Company and its affiliates: Princeton Insurance Company; PLICO, Inc.; Wellfleet Insurance Company; and Wellfleet New York Insurance Company; as well as MedPro’s two reinsured affiliates, MedPro RRG Risk Retention Group and AttPro RRG Reciprocal Risk Retention Group (both domiciled in the District of Columbia). The outlook of these ratings is stable.

The ratings reflect MedPro’s balance sheet strength, which AM Best assesses as strongest, as well as its strong operating performance, favorable business profile and appropriate enterprise risk management. The ratings also acknowledge MedPro’s risk-adjusted capitalization being at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR), long-term profitable operating performance and the leading market position it maintains in the medical professional liability (MPL) sector. Additionally, the ratings consider the group’s substantial distribution capabilities, prudent claims-handling philosophy and culture of maintaining a margin of safety. Furthermore, the ratings benefit from the explicit and implicit financial support provided by its affiliate, National Indemnity Company, and MedPro’s ultimate parent, Berkshire Hathaway Inc., which includes reinsurance programs, investment opportunities and capital support.

Partially offsetting these positive rating factors are the inherent challenges associated with the MPL line of business, particularly as it relates to price competition, changing market dynamics, potential changes in legislation (i.e., tort reform), increasing loss cost trends and regulatory risk. At the same time, AM Best recognizes the organization’s strong management team, diversified premium base and jurisdictional diversity, which have resulted in MedPro outperforming its peers over the longer term.

The group’s large allocation in common stocks exposes it to significant volatility during periods when the equity markets experience sharp declines. The group has historically demonstrated its ability to absorb this occasional volatility due to its low underwriting leverage and the investment managers’ historical trend of success in turbulent markets.  

Posted in A.M. Best, Medical Protective (MedPro) | Leave a comment
Aledade, the Cooperative of American Physicians Join to Support California Physicians in Shift to Value-Based Care

June 24, 2021 by matray

Aledade, Inc. and the Cooperative of American Physicians, Inc. (CAP), a provider of medical professional liability protection in California, today announced a new collaboration designed to support CAP member physicians in the transition to value-based care. Aledade’s physician-led accountable care organization (ACO) model and support services will be offered to CAP’s more than 12,000 members through CAPAdvantage, CAP’s suite of no-cost or discounted practice management programs to help physicians run their most successful practice.

“As a physician-owned organization, CAP has demonstrated its commitment to helping California physicians access the resources necessary to thrive during a transformational time in healthcare and our new joint effort will ensure that they can continue to do so as our system shifts to value-based care,” said Farzad Mostashari, MD, co-founder and CEO of Aledade. “We look forward to providing CAP members with the services and supports needed to achieve shared savings by delivering the best possible care to their patients.”

CAP members enrolled in Aledade’s ACO model will receive access to Aledade’s comprehensive range of capabilities that include data analytics, user-friendly care management and outreach tools, regulatory expertise, strong payer relationships and local, hands-on support. Together, CAP and Aledade will also provide additional educational materials to CAP members to support them as they enter value-based contracts, including webinars, events and articles.

“Understanding the ever-changing financial and regulatory issues physicians must navigate, CAP welcomes the opportunities that Aledade offers to help our members’ practices increase revenue and improve patient outcomes,” said CAP CEO Sarah Scher. “CAP and Aledade have a shared commitment to bolster the medical community’s ability to provide excellent patient care while supporting the viability of independent physician practices. Aledade’s proven value-based care programs and associated benefits present a number of solutions that can address new and ongoing challenges California physicians are experiencing.”

According to Aledade, its ACOs have reduced preventable hospital stays, emergency room visits and unnecessary medical services, driving more than $400 million in healthcare cost reductions from 2014 to 2019. Aledade’s collaboration with CAP represents the company’s continued commitment to helping California physicians succeed in value-based care. Aledade provides practice transformation support services to physicians enrolled in Aledade’s ACO network in the state.

As part of its mission to support California physicians with outstanding medical malpractice coverage and a wide array of supplemental risk management and practice management benefits, CAP identifies vendors who are able to save medical practices time, money and energy through the CAPAdvantage program.

Posted in Cooperative of American Physicians (CAP) | Leave a comment
AM Best Revises Outlooks to Positive for California Healthcare Insurance Company, Inc., A Risk Retention Group

June 21, 2021 by matray

AM Best revised the outlooks to positive from stable and affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of “a-” (Excellent) of California Healthcare Insurance (CHI) Company, Inc., A Risk Retention Group.

The Credit Ratings reflect CHI’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 positive outlooks reflect favorable trends in CHI’s performance relative to similarly assessed peers in the medical professional liability (MPL) insurance industry. Underwriting results have been consistently profitable and exhibited low volatility despite broader deterioration across the MPL market. Premium rebates are distributed to insureds based on CHI’s financial performance, at the discretion of the board of directors. Rebates have proven to be an effective policyholder retention tool, through rewarding member-owners for loyalty and favorable loss experience. Since rebates effectively reduce reported net premiums written and earned, AM Best considers the company’s operating performance before and after rebates, both of which support the revised outlooks. CHI’s business profile continues to be limited, primarily due to product and geographic concentration in professional liability insurance for independent hospitals and other health care entities throughout California.

Posted in A.M. Best | Leave a comment
AM Best Affirms Credit Ratings of Members of MedPro Group

June 15, 2021 by matray

AM Best has affirmed the Financial Strength Rating of A++ (Superior) and the Long-Term Issuer Credit Ratings of “aa+” of the members of MedPro Group (MedPro). These Credit Ratings (ratings) apply to The Medical Protective Company (Fort Wayne, IN) and its affiliates: Princeton Insurance Company (Princeton, NJ); PLICO, Inc. (Oklahoma City, OK); Wellfleet Insurance Company (Fort Wayne, IN); and Wellfleet New York Insurance Company (Flushing, NY); as well as MedPro’s two reinsured affiliates, MedPro RRG Risk Retention Group and AttPro RRG Reciprocal Risk Retention Group (both domiciled in the District of Columbia). The outlook of these ratings remains stable.

The ratings reflect MedPro’s balance sheet strength, which AM Best categorizes as strongest, as well as its strong operating performance, favorable business profile and appropriate enterprise risk management.

The ratings also acknowledge MedPro’s strongest risk-adjusted capitalization, long-term profitable operating performance and the leading market position it maintains in the medical professional liability (MPL) sector. Additionally, the ratings consider the group’s substantial distribution capabilities, prudent claims-handling philosophy and culture of maintaining a margin of safety. Furthermore, the ratings benefit from the explicit and implicit financial support provided by its affiliate, National Indemnity Company, and MedPro’s ultimate parent, Berkshire Hathaway Inc. [NYSE: BRK A and BRK B], which includes reinsurance programs, investment opportunities and capital support.

Partially offsetting these positive rating factors are the inherent challenges associated with being a predominately monoline MPL insurer, particularly as they relate to price competition, changing market dynamics, potential changes in legislation (i.e., tort reform), increasing loss cost trends and regulatory risk. At the same time, AM Best recognizes the organization’s strong management team, broad premium base and jurisdictional diversity, which have resulted in MedPro outperforming its peers over the longer term.

In 2020, the group has experienced balance sheet volatility due to equity market devaluations related to COVID-19. The group’s large allocation in common stocks exposes them to significant volatility. However, the group is well-positioned to accept this risk due to their low underwriting leverage and the investment managers’ historical trend of success in volatile markets. AM Best also conducted stress tests on the group’s risk-adjusted capitalization, which incorporate multiple assumptions related to the market impact of COVID-19. MedPro performed well under all stressed scenarios, and management believes the impact of COVID-19 will be manageable.

Downward rating pressure may result from a material decrease in risk-adjusted capitalization. Downward rating pressure also may result should the group’s relationship with Berkshire Hathaway Inc. or National Indemnity Company change, which also would result in a diminution of the business profile.

Posted in A.M. Best, Medical Protective (MedPro) | Leave a comment
Integris Group Promotes James “Jay” Votta to Vice President of Actuarial Services

June 14, 2021 by matray

Integris Group, formerly CMIC, announced today that James “Jay” Votta has been promoted to vice president of actuarial services. He joined Integris Group in July of 2020.

“Jay’s expertise in both actuarial services as well as in the Property & Casualty industry will be tremendously beneficial in continuing the company’s legacy of financial stability,” said Michael Conneely, Integris Group chief financial officer. “Through his new role, I am confident his skills and knowledge will enable us to continue to expand our product offerings and services to members, and also extend the company’s reach from our current footprint.”

Prior to joining the Integris Group, he was a partner with Ernst & Young and the appointed actuary for a variety of leading companies in the insurance and reinsurance industries.

Posted in Appointments and Promotions | Tagged | Leave a comment
Cooperative of American Physicians Announces Retirement of Cindy Belcher; Hammon Acuna Promoted to Chief Operating Officer; Alyson Lewis Elevated to President and Chief Operating Officer of CAPIC

June 4, 2021 by matray

The Cooperative of American Physicians (CAP) announced the retirement of its chief operating officer Cindy Belcher, effective August 6, 2021. Belcher is stepping down from her role after two decades of building the CAP business development and membership services functions, along with her oversight of various operations departments of the company.

According to CAP, Belcher was instrumental in overseeing and evolving its membership development, membership services and practice management services functions, along with the company’s marketing and communications, underwriting and human resources departments. She also held executive management responsibility for CAP Physicians Insurance Agency, Inc., supplying the full line of insurance products beyond the company’s professional liability protection and CAPAssurance, a Risk Purchasing Group.

“Cindy has been an incredible force in the development of CAP, CAPAssurance, CAPIC and CAP Physicians Insurance Agency,” said Sarah E. Scher, JD, CAP chief executive officer. “She has led the growth and achievement of excellence in these business units. She will be dearly missed, and we wish her much happiness and success in retirement.”

Hammon Acuna, currently CAP senior vice president and chief membership officer, will assume Belcher’s portfolio as CAP’s new chief operating officer. He will also have responsibility for the company’s Risk Management & Patient Safety department. Acuna has been managing CAP business development and membership services functions since 2015.

Alyson Lewis, JD, CPCU, currently CAP senior vice president and chief underwriting officer, was promoted to CAPIC president and chief operating officer. She will continue to be responsible for overseeing the underwriting functions of the entire CAP enterprise and will now assume full executive responsibility for all CAPAssurance business development.

“Hammon and Alyson are established leaders in our organization and in general,” Scher said. “As CAP veterans with proven track records of success, we are confident they will apply their demonstrable executive skill sets and deep medical professional liability industry knowledge to lead CAP to continued growth and excellence in achieving our mission to support health care providers with the best products and services.”  

Posted in Appointments and Promotions, Cooperative of American Physicians (CAP) | Leave a comment