Press Release - SEPTEMBER 05, 2019
AM Best Revises Issuer Credit Rating Outlook to Positive for Lawyers Mutual Liability Insurance Company of North Carolina
FOR IMMEDIATE RELEASE
OLDWICK - SEPTEMBER 05, 2019
These Credit Ratings (ratings) reflect LML’s balance sheet strength, which AM Best categorizes as strongest, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management.
The positive outlook for the Long-Term ICR is based on LML’s improved operating performance in recent years, driven primarily by favorable loss experience, which has led to strong surplus growth. The favorable earnings trend is mainly attributed to improved underwriting, stricter underwriting and claims handling and favorable reserve development. In addition, LML’s return on invested assets has been stable and compares favorably with those of the composite averages.
The ratings also recognize LML’s strongest level of risk-adjusted capitalization, strong liquidity, conservative investment portfolio and comprehensive reinsurance program that protects policyholder surplus from volatility in results. In addition, reserves have developed favorably and continued to decline in recent years as a result of the company’s focus on closing claims quickly and lower claim frequency. LML has long-standing expertise in the North Carolina legal professional liability sector; however, geographic and product concentration subjects it to a higher degree of risk from fluctuations in the state’s economic conditions.
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 Understanding Best’s Credit Ratings. For information on the proper media use of Best’s Credit Ratings and AM Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and AM Best Rating Action Press Releases.
AM Best is a global rating agency and information provider with a unique focus on the insurance industry.