OLDWICK, N.J.--(BUSINESS WIRE)--A.M. Best Co. has upgraded the financial strength rating to A (Excellent) from A- (Excellent) and issuer credit ratings to ”a” from “a-” of Medical Professional Mutual Insurance Company, ProSelect Insurance Company (both of Boston, MA)and Coverys RRG, Inc. (District of Columbia), all members of Coverys Companies. The outlook for all ratings has been revised to stable from positive.
The rating upgrades reflect Coverys Companies members’ excellent capitalization, strong underwriting results and favorable historical investment income. Additional factors supporting the upgrades include the organization’s history of favorable reserve development and its dedication to loss prevention. The ratings also consider the group’s geographic diversification and its leading market position in several jurisdictions. Additional factors supporting the ratings include the breadth and depth of the organization’s enterprise risk management program. The revised outlook is based on A.M. Best’s expectation of continued excellent operating performance across multiple facets of the organization.
Partially offsetting the ratings are factors inherent to the organization being a medical professional liability carrier, particularly as it relates to price competition, tort reform, loss cost trends and regulatory challenges. Coverys Companies remains concentrated in this highly cyclical market.
The methodology used in determining these ratings is Best’s Credit Rating Methodology, which provides a comprehensive explanation of A.M. Best’s rating process and contains the different rating criteria employed in the rating process. Key criteria utilized include: “Risk Management and the Rating Process for Insurance Companies”; “Understanding BCAR for Property/Casualty Insurers”; and “Rating Members of Insurance Groups.” Best’s Credit Rating Methodology can be found at www.ambest.com/ratings/methodology.
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