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FOR IMMEDIATE RELEASE
OLDWICK, N.J. - OCTOBER 04, 2010 12:00 AM (EDT)
A.M. Best Co. has assigned a financial strength rating of A- (Excellent) and an issuer credit rating of "a-" to Allied Professionals Insurance Company, A Risk Retention Group, Inc. (APIC) (Scottsdale, AZ). The outlook assigned to both ratings is stable.
The ratings of APIC reflect its excellent capital position and favorable operating performance. The ratings further recognize the company's dedication to its core markets of professional liability for chiropractors, massage therapists and acupuncturists, including its level of involvement in loss prevention and risk management. Additional positive factors include APIC's wide geographic distribution, as well as its conservative investment portfolio. The outlook reflects APIC's strong balance sheet and its ability to sustain profitable operations through market cycles.
Partially offsetting these favorable factors is the company's concentration as a single line carrier of professional liability coverage for alternative health care professionals. In addition, because of the company's recent growth rate, it is exposed to the potential impact of adverse loss experience or insufficient rate structure and the stresses these may cause on resources.
The principal methodology used in determining these ratings is Best's Credit Rating Methodology - Global Life and Non-Life Insurance Edition, which provides a comprehensive explanation of A.M. Best's rating process and highlights the different rating criteria employed. Additional key criteria utilized include: "Risk Management and the Rating Process for Insurance Companies"; and "Understanding BCAR for Property/Casualty Insurers." Methodologies can be found at www.ambest.com/ratings/methodology.
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.