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FOR IMMEDIATE RELEASE
OLDWICK, N.J. - DECEMBER 11, 2007 12:00 AM (EST)
A.M. Best Co. has affirmed the financial strength rating (FSR) of A++ (Superior) and the issuer credit rating of "aa+" of The Medical Protective Company (Medical Protective) (Fort Wayne, IN). The outlook for both ratings is stable.
These rating actions reflect both the implicit and explicit financial support provided by Medical Protective's ultimate parent, Berkshire Hathaway, Inc. (Omaha, NE) [NYSE: BRK-A], as well as Medical Protective's (re)insurance affiliates and the benefits derived from two significant reinsurance transactions. These transactions include a loss portfolio transfer and a quota share agreement between Medical Protective and its parent, Columbia Insurance Company (Columbia Insurance), and an affiliate, National Indemnity Company, which are indirect wholly owned subsidiaries of Berkshire Hathaway, Inc. The transactions demonstrate the commitment provided by Berkshire Hathaway, Inc., partially mitigating the risk of adverse loss reserve development and significantly improving Medical Protective's risk-adjusted capitalization that is supportive of its Superior rating.
The ratings also consider Medical Protective's leading market presence in the primary medical professional liability market, its distribution capabilities, aggressive claims philosophy and its comparatively strong operating performance. Additionally, the ratings reflect Medical Protective's geographic diversification and strong competitive position.
For Best's Ratings, an overview of the rating process and rating methodologies, please visit Best's Rating Center.
Founded in 1899, A.M. Best Company is a global full-service credit rating organization dedicated to serving the financial and health care service industries, including insurance companies, banks, hospitals and health care system providers.