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FOR IMMEDIATE RELEASE
OLDWICK - JUNE 10, 2015 12:24 PM (EDT)
A.M. Best has upgraded the financial strength rating to A (Excellent) from A- (Excellent) and the issuer credit ratings to "a" from "a-" of the members of the BETA Healthcare Group, BETA Healthcare Group Risk Management Authority (Alamo, CA) and its subsidiary, Health Providers Insurance Reciprocal, A Risk Retention Group (Honolulu, HI). The outlook for all ratings has been revised to stable from positive.
The ratings are based on a consolidation of the group members and reflect the group's strong balance sheet, favorable operating profitability, and highly specialized market focus as a leading provider of non-assessable group risk-sharing coverage for hospital and medical professional liability in California.
The positive rating factors are partially offset by the group's product and geographic concentration of risk and the inherent challenges associated with legislative (tort) reform. These negatives are somewhat offset by management's commitment to adequate reserves and rates, in addition to the benefits derived from the group's strong market position in California. A.M. Best also recognizes the unsuccessful challenge to tort reform in 2014.
The ratings of the group are appropriate for its capitalization, operating performance and business profile and further upward movement is not anticipated in the near to mid-term. The ratings may be lowered if a negative trend in operating performance were to develop or if the group experiences a significant decrease in risk-adjusted capitalization.
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. Best's Credit Rating Methodology can be found at www.ambest.com/ratings/methodology .
Key insurance criteria reports utilized:
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 visit A.M. Best's Ratings & Criteria Center .
A.M. Best Company is the world's oldest and most authoritative insurance rating and information source.