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FOR IMMEDIATE RELEASE
OLDWICK, N.J. - JANUARY 14, 2009 12:00 AM (EST)
A.M. Best Co. has revised the outlook to negative from stable and affirmed the financial strength rating of A (Excellent) and issuer credit rating of "a" of Minnesota Lawyers Mutual Insurance Company (Minnesota Lawyers) (Minneapolis, MN).
The ratings reflect Minnesota Lawyers' strong risk-adjusted capital level, historical operating profitability, conservative reserving practices and good geographical spread of risk. In addition, the company continues to maintain very strong policyholder retention levels.
The revised outlook reflects the decline in Minnesota Lawyers' underwriting and operating performance. The company's management has taken action to address this trend and expects underwriting results to improve over the near term. A.M. Best is concerned that if these initiatives do not have the desired effect and investment markets do not improve, surplus growth will be challenged and risk-adjusted capitalization could decline further.
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.