Press Release - JULY 13, 2016
A.M. Best Upgrades Ratings of Preferred Physicians Medical Risk Retention Group, Inc.
FOR IMMEDIATE RELEASE
OLDWICK - JULY 13, 2016
The ratings reflect Preferred Physicians’ strong risk-adjusted capitalization, its extended trend of above average earnings driven by very profitable underwriting through market cycles, and a business profile focused on providing medical professional liability coverage to anesthesiologists in multiple states. Historical underwriting gains have been driven by the company’s focused underwriting strategy, extensive risk management program, geographic diversification, low claims frequency and conservative reserving that has produced redundancies year-over-year.
These positive rating factors are partially offset by Preferred Physicians’ narrow spread of risk as it operates exclusively in the anesthesiology segment of the medical professional liability market, which is characterized by its low frequency and high severity of claims. Given its market segment concentration, the company also faces the inherent challenges as they relate to price competition, legislative (tort) reform, as well as rising underwriting expenses and loss cost trends. However, despite the company’s limited business profile, underwriting is also supported by extensive data related to its specialty focus.
This press release relates to rating(s) that have been published on A.M. 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 A.M. Best’s Recent Rating Activity web page.
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