AM Best Revises Outlooks to Stable for Members of Coverys Companies

OLDWICK, N.J.--(BUSINESS WIRE)--AM Best has revised the outlooks to stable from negative and affirmed the Financial Strength Rating (FSR) of A (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of “a” (Excellent) of Medical Professional Mutual Insurance Company (Boston, MA) and its rating unit members, collectively known as Coverys Companies (Coverys). (See below for a detailed list of these subsidiaries and Credit Ratings [ratings]).

The ratings reflect Coverys’ balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management (ERM).

The revision of the outlooks to stable reflects Coverys’ improved operating results in recent years and through the first half of 2026, as well as the forward-looking expectation for the group’s performance to be roughly in line with peers assessed at adequate within the medical professional liability (MPL) composite. While underwriting results continue to be impacted by challenging market conditions within the MPL segment, consistent and growing net investment income has enabled Coverys to produce positive pretax earnings in the three most recent years and through the first half of 2026. Significant amounts of realized capital gains in most recent years have further contributed to overall earnings. As such, overall operating ratios and return metrics have demonstrated improvement.

Coverys continues to maintain the strongest level of risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR). Through its improved results, the group has managed to grow its surplus in the three most recent years and through the first half of 2026. However, persistent adverse prior-year loss reserve development in recent years contributed toward AM Best lowering the balance sheet strength assessment from strongest to very strong. AM Best will continue to monitor Coverys’ loss reserves and developments.

The neutral business profile assessment reflects Coverys’ solid position within the U.S. MPL segment as the seventh largest writer based on 2025, direct premiums written. Management is focused on improving its core U.S. MPL book while diversifying its business across the health care space through expanding its accident & health lines of business, as well as its international MPL presence. Strengthened leadership across the organization in recent years provide support for the group’s current and future operations. ERM continues to be viewed as appropriate, with a developed framework in place and risk management capabilities close in line with the organization’s risk profile.

The FSR of A (Excellent) and the Long-Term ICRs of “a” (Excellent) have been affirmed with the outlooks revised to stable from negative for the following members of the Coverys companies rating unit:

• Medical Professional Mutual Insurance Company
• ProSelect Insurance Company
• Preferred Professional Insurance Company
• Coverys Specialty Insurance Company
• Coverys Risk Retention Group, Inc.
• Coverys Limited
• Coverys International Insurance Company Designated Activity Company

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.

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