OLDWICK, N.J.--(BUSINESS WIRE)--A.M. Best has upgraded the Financial Strength Rating (FSR) to A (Excellent) from A- (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICR) to “a” from “a-” of Medical Mutual Insurance Company of Maine (MMIC) (Portland, ME), lead member of Medical Mutual Group of Maine (MMGM). The Credit Rating (rating) outlooks have been revised to stable from positive.
The ratings reflect MMGM’s balance sheet strength, which A.M. Best categorizes as strongest, as well as its strong operating performance, limited business profile and appropriate enterprise risk management.
These rating actions reflect the group’s disciplined underwriting strategy, which has resulted in profitable underwriting income, before policyholder dividends, in recent years despite challenging market conditions and a decline in the magnitude of favorable reserve development on prior accident years. MMGM’s operating earnings also have benefited from significant net investment income during this time. As a result, operating profitability has outpaced the medical professional liability (MPL) composite. Furthermore, the ratings reflect the cycle management programs and review processes put into place to reduce volatility should the MPL market deteriorate in the group's key jurisdictions. These positive rating factors are offset partially by the inherent market risks associated with the MPL sector as it relates to price competition, loss cost trends, regulatory challenges and changes in the overall U.S. healthcare system.
The stable outlooks are based on A.M. Best’s expectation that the group’s rating fundamentals for balance sheet strength, operating performance, business profile and enterprise risk management will be maintained over the medium term.
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