A.M. Best has downgraded the financial strength rating of Mountain States Healthcare (MSH) Reciprocal Risk Retention Group (RRG).
The RRG’s financial strength rating has fallen to “B++ (Good)” from “A- (Excellent)”, while its long-term issuer credit rating has been downgraded to “bbb” from “a-”.
The rating downgrades are a result of “deterioration in the company’s risk-adjusted capitalisation and operating performance in 2016, following significant adverse loss reserve development on prior accident years, primarily 2015 and 2012”.
A.M. Best added that it is concerned with the possibility of additional deterioration in risk-adjusted capitalisation if operating performance does not improve in 2017.
The current ratings of MSH do reflect its balance sheet strength and market position as a provider of medical professional liability insurance in Montana and other Rocky Mountain states.
