A.M. Best has upgraded the financial strength rating to “A (Excellent)” from “A- (Excellent)” and the issuer credit rating to “a” from “a-” of Coastal Medical Insurance.
The outlook for both ratings has been revised to stable from positive.
The ratings reflect Coastal’s excellent risk-adjusted capitalisation and operating performance, strong liquidity position, expanded and risk management strategy and practices, and conservative investment strategy.
Coastal’s ratings are partially offset by its limited market. But the rating firm feels that the concerns are mitigated due to the explicit as well as implicit parental support of Meridian Health System.
Meridian’s risk management programme for the hospital system establishes risk control policies and procedures, which include safety education, data collection and evaluation, claims management and risk financing.
The ratings also take into consideration the role Coastal serves in providing a discipline programme of hospital and physician professional and general liability self-insurance to Meridian.
Coastal’s ratings are not expected to be upgraded or its outlook revised within the next 12-24 months, as the company’s operating performance and capital position have already been considered in the rating process.
