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| [December 17, 2012] |
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A.M. Best Upgrades Ratings of Certain Members of Coverys Companies
OLDWICK, N.J. --(Business Wire)--
A.M. Best Co. has upgraded the financial strength rating to A
(Excellent) from A- (Excellent) and issuer credit ratings to "a" from
"a-" of Medical Professional Mutual Insurance Company, ProSelect
Insurance Company (both of Boston, MA)and Coverys RRG, Inc.
(District of Columbia), all members of Coverys Companies. The
outlook for all ratings has been revised to stable from positive.
The rating upgrades reflect Coverys Companies members' excellent
capitalization, strong underwriting results and favorable historical
investment income. Additional factors supporting the upgrades include
the organization's history of favorable reserve development and its
dedication to loss prevention. The ratings also consider the group's
geographic diversification and its leading market position in several
jurisdictions. Additional factors supporting the ratings include the
breadth and depth o the organization's enterprise risk management
program. The revised outlook is based on A.M. Best's expectation of
continued excellent operating performance across multiple facets of the
organization.
Partially offsetting the ratings are factors inherent to the
organization being a medical professional liability carrier,
particularly as it relates to price competition, tort reform, loss cost
trends and regulatory challenges. Coverys Companies remains concentrated
in this highly cyclical market.
The methodology used in determining these ratings is Best's Credit
Rating Methodology, which provides a comprehensive explanation of A.M.
Best's rating process and contains the different rating criteria
employed in the rating process. Key criteria utilized include: "Risk
Management and the Rating Process for Insurance Companies";
"Understanding BCAR for Property/Casualty Insurers"; and "Rating Members
of Insurance Groups." Best's Credit Rating Methodology can be found at www.ambest.com/ratings/methodology.
Founded in 1899, A.M. Best Company is the world's oldest and most
authoritative insurance rating and information source. For more
information, visit www.ambest.com.
Copyright © 2012 by A.M. Best Company, Inc. ALL RIGHTS
RESERVED.
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