A.M. Best has affirmed the financial strength rating (FSR) of A (Excellent) and the long-term issuer credit rating (long-term ICR) for Medical Professional Mutual Insurance Company’s (ProMutual) and its wholly-owned subsidiaries.
ProMutual’s subsidiaries include ProSelect Insurance Companies, Preferred Professional Insurance Company, Coverys Specialty Insurance Company and the sponsored risk retention group (RRG), Coverys RRG.
All companies are members of Coverys Companies.
The ratings agency also assigned the FSR of A (Excellent) and the long-term ICR of “a” of Healthcare Underwriting Group (HU).
The outlook for all these ratings is stable.
A.M. Best recognises the implementation of a quota share agreement between HU and ProMutual.
In addition to substantial reinsurance support, HU will benefit from ProMutual’s support for its policyholders through strong patient safety and risk management programmes.
ProMutual’s ratings reflect Coverys’ balance sheet strength, categorised as strongest, in addition to its marginal operating performance, neutral business profile and appropriate enterprise risk management.
The group has exhibited a declining trend in underwriting and overall profitability over the past three years, mainly due to an increase in claims severity, above-average expenses, soft competitive pricing and continued low-interest rate environment.
Despite the contribution of the group’s investment returns to overall earnings, A.M. Best remains concerned by the current medical professional liability market conditions.
Gregg Hanson, CE, and president of Coverys, said the company was pleased with A.M. Best’s rating.
Hanson stated: “Coverys’ financial strength is fundamental to the continued operational services providing policyholders progressive risk management and enhanced patient safety programmes.”
CEO and president of Joshua Salman commented: “We are proud to receive an A Rating from A.M. Best for Healthcare Underwriters Group.”
“The recognition showcases Coverys’ financial strength and the collective resources of Coverys companies and Healthcare Underwriters Group.”
