OLDWICK, N.J.--(BUSINESS WIRE)--A.M. Best has affirmed the Financial Strength Rating of A++ (Superior) and the Long-Term Issuer Credit Ratings of “aa+” of the members of MedPro Group (MedPro) (headquartered in Fort Wayne, IN). These Credit Ratings (ratings) apply to The Medical Protective Company (Fort Wayne, IN), its affiliates, Princeton Insurance Company (Princeton, NJ), PLICO, Inc. (Oklahoma City, OK), Commercial Casualty Insurance Company (Fort Wayne, IN) and Atlanta International Insurance Company (Flushing, NY), as well as its two reinsured affiliates, MedPro RRG Risk Retention Group and AttPro RRG Reciprocal Risk Retention Group (both domiciled in the District of Columbia). The outlook of these ratings is stable.
The ratings reflect MedPro’s balance sheet strength, which A.M. Best categorizes as strongest, as well as its strong operating performance, favorable business profile and appropriate enterprise risk management.
The ratings reflect MedPro’s robust capitalization, long-term operating performance and the significant market position it maintains in the medical professional liability (MPL) sector. The ratings also consider the group’s substantial distribution capabilities, prudent claims-handling philosophy and culture of maintaining a margin of safety. Furthermore, the ratings benefit from the explicit and implicit financial support provided by the ultimate parent, Berkshire Hathaway Inc. [NYSE: BRK A and BRK B], which includes reinsurance programs, investment opportunities and capital support.
Partially offsetting these positive rating factors are the inherent challenges associated with being a predominately monoline MPL insurer, particularly as they relate to price competition, changing market dynamics, potential changes in legislative (i.e., tort) reform, increasing loss cost trends and regulatory risk. At the same time, A.M. Best recognizes the organization’s strong management team, broad premium base and jurisdictional diversity that mitigate these concerns.
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