A.M. Best has revised the outlooks to positive from stable and affirmed the financial strength rating of A- (Excellent) and the long-term issuer credit rating of “a-” of Community Hospital Alternative For Risk Transfer (CHART), a reciprocal risk retention group (RRG), based in Burlington, Vermont.
The ratings reflect CHART’s balance sheet strength, which A.M. Best categorised as very strong, as well as its strong operating performance, limited business profile and appropriate enterprise risk management.
A.M. Best noted that the positive outlooks reflect the continued strengthening of CHART’s balance sheet through strong operating results.
“After multiple years of net declines in membership, primarily due to merger and acquisition activity in the healthcare industry, the company’s hospital member base has stabilised more recently,” the rating firm said.
Member growth, which has been attributed to recently established relationships with independent agents and brokers, occurred last year and so far this year.
A.M. Best suggested that hardening pricing conditions in the excess hospital professional liability insurance market should further increase CHART’s value proposition to both current and prospective members.
“Key balance sheet metrics, including underwriting leverage ratios, Best’s Capital Adequacy Ratio (BCAR) scores and its surplus size compare favourably with peers in the medical professional liability insurance industry that have higher balance sheet strength assessments,” A.M. Best concluded.