CORRECTING and REPLACING AM Best Upgrades Issuer Credit Rating of Medical Mutual Insurance Company of Maine

OLDWICK, N.J.--(BUSINESS WIRE)--Please replace the release with the following corrected version due to multiple revisions in the third paragraph.

The updated release reads:

AM BEST UPGRADES ISSUER CREDIT RATING OF MEDICAL MUTUAL INSURANCE COMPANY OF MAINE

AM Best has upgraded the Long-Term Issuer Credit Rating to “a+” (Excellent) from “a” (Excellent) and affirmed the Financial Strength Rating of A (Excellent) of Medical Mutual Insurance Company of Maine (MMIC) (Portland, ME). The outlook of these Credit Ratings (ratings) is stable.

The ratings reflect MMIC’s balance sheet strength, which AM Best assesses as strongest, as well as its strong operating performance, limited business profile and appropriate enterprise risk management (ERM).

These rating actions are the result of MMIC’s disciplined underwriting strategy, which has resulted in profitable underwriting income in recent years despite challenging market conditions. In addition, despite the decline in the magnitude of MMIC’s favorable reserve development on prior accident years, the company has achieved solid organic surplus growth. MMIC’s balance sheet strength also has benefited from strong liquidity measures and favorable leverage during this time. As a result, the company’s balance sheet strength has compared favorably to AM Best’s 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 MMIC’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 AM Best’s expectation that the company’s rating fundamentals for balance sheet strength, operating performance, business profile and ERM will be maintained over the medium term.

This press release relates to Credit Ratings that have been published on AM 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 AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best's Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

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