A.M. Best Affirms Credit Ratings of Members of MedPro Group
July 18, 2017by
A.M. Best recently affirmed the Financial Strength Rating of A++ (Superior) and the Long-Term Issuer Credit Ratings of “aa+” of the members of MedPro Group. These Credit Ratings (ratings) apply to The Medical Protective Company (Fort Wayne, IN), its affiliates, Princeton Insurance Company (Princeton, NJ), PLICO, Inc. (Oklahoma City, OK), Commercial Casualty Insurance Company (Fort Wayne, IN) and Atlanta International Insurance Company (Flushing, NY), and its 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. According to Best, the ratings reflect MedPro’s excellent balance sheet strength, long-term operating performance, and the significant market position it maintains in the medical professional liability (MPL) sector. The ratings also consider the group's substantial distribution capabilities and prudent claims handling philosophy. Furthermore, the ratings benefit from the explicit and implicit financial support provided by the 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 being a predominately mono-line MPL insurer, particularly as they relate to price competition, changing market dynamics, potential changes in legislative (tort) reform, increasing loss cost trends and regulatory challenges. At the same time, A.M. Best recognizes the organization's strong management team, broad premium base and jurisdictional diversity that mitigate these concerns.