OLDWICK, N.J.--(BUSINESS WIRE)--A.M. Best has upgraded the financial strength rating to A- (Excellent) from B++ (Good) and the issuer credit rating to “a-” from “bbb+” of Michigan Professional Insurance Exchange (MPIE) (Grand Rapids, MI). The outlook for each rating has been revised to stable from positive.
The rating actions reflect MPIE’s strong risk-adjusted capitalization, historically profitable operating results, stable loss reserving trends and its expertise in Michigan’s medical professional liability market. Additionally, supportive rating factors include an expansion of MPIE’s enterprise risk management programs and underwriting performance that compares favorably with its peer companies. These positive rating factors are partially offset by the risks inherent in the company’s single-state and single-product profile. These risks include the potential for changes in the regulatory, legislative, economic and current tort environment. In addition, A.M. Best’s continues to monitor the company’s management of its subscriber savings accounts, which represent a considerable percentage of the company’s policyholders’ surplus.
While MPIE is well-positioned at its current rating level, negative rating actions could result if the operating performance falls markedly short of A.M. Best’s expectation or if there is a material weakening of the company’s risk-adjusted capitalization.
This press release relates to rating(s) that have been published on A.M. Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see A.M. Best’s Recent Rating Activity web page.
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