AM Best Confirms Credit Ratings of MedPro Group Members


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OLDWICK, New Jersey – (COMMERCIAL THREAD) –AM Best confirmed the financial strength rating of A ++ (superior) and the long-term issuer credit rating of “aa +” (superior) of the members of the MedPro Group (MedPro). These credit ratings (ratings) apply to The Medical Protective Company (Fort Wayne, IN) and its affiliates: Princeton Insurance Company (Princeton, NJ); PLICO, Inc. (Oklahoma City, OK); Wellfleet Insurance Company (Fort Wayne, IN); and Wellfleet New York Insurance Company (Flushing, NY); as well as the two reinsured subsidiaries of MedPro, MedPro RRG Risk Retention Group and AttPro RRG Reciprocal Risk Retention Group (both domiciled in the District of Columbia). The outlook for these ratings is stable.

The ratings reflect the strength of MedPro’s balance sheet, which AM Best considers to be the strongest, as well as its strong operational performance, favorable business profile and appropriate management of business risks.

The ratings also recognize that MedPro’s risk-adjusted capitalization is at the highest level, as measured by Best’s capital adequacy ratio (BCAR), long-term profitable operating performance and leadership position in the market. market it maintains in the medical professional liability (MPL) sector. In addition, the ratings take into account the group’s substantial distribution capacities, its philosophy of prudent claims management and its culture of maintaining a safety margin. In addition, the ratings benefit from the explicit and implicit financial support provided by its affiliate, National Indemnity Company, and MedPro’s ultimate parent company, Berkshire Hathaway Inc. [NYSE: BRK A and BRK B], which includes reinsurance programs, investment opportunities and capital support.

These positive scoring factors partially offset the challenges inherent in the MPL business line, particularly with regard to price competition, changing market dynamics, potential changes in legislation (i.e. in the At the same time, AM Best recognizes the organization’s strong leadership team, diverse bonus base, and jurisdictional diversity, which have allowed MedPro to outperform its peers in the long run.

The group’s large allocation to ordinary shares exposes it to significant volatility during periods when the equity markets experience sharp declines. The group has historically demonstrated its ability to absorb this occasional volatility due to its low subscription leverage and the managers’ historical trend of success in turbulent markets.

This press release relates to credit ratings published on the AM Best website. For all rating information relating to the publication and relevant disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this publication, please see AM Best’s Recent Rating Activity webpage. . For more information on the use and limitations of credit rating reviews, please see Best’s Guide to Credit Ratings. For more information on the appropriate media use of Best’s credit scores and AM Best press releases, please see Guide for the Media – Appropriate Use of Best’s Credit Ratings and press releases. of action from AM Best Rating.

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

Copyright © 2021 by AM Best Rating Services, Inc. and / or its affiliates. ALL RIGHTS RESERVED.

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