A.M. Best has affirmed the financial strength rating of “A- (Excellent)” and issuer credit rating of “a-” to LAMMICO RRG.
LAMMICO RRG’s ratings reflect its solid risk-adjusted capitalisation, strong reinsurance protection, and A.M. Best’s expectation of a modest operating performance (being a startup company).
Significant reinsurance support is provided to LAMMICO RRG by its sponsoring organisation, Louisiana Medical Mutual Insurance Company.
“These positive rating factors are partially offset by LAMMICO RRG’s risk of adverse losses from being a start-up company, expanding into new states and the concentration risk of primarily writing one line of business in a somewhat limited geographic area,” said the rating firm in a release.
The outlook is based on A.M. Best’s expectation that LAMMICO RRG will have improved capitalisation and favorable operating performance going forward, as well as the potential ongoing benefits from the favorable tort environment.
Upward rating actions for LAMMICO RRG could result from long-term favorable performance on both an underwriting and operating basis and the consistent generation of surplus and maintenance of strong capitalisation.
