AM Best

AM Best Assigns Credit Ratings to Members of Healthcare Providers Insurance Group

 Connor Brach, FRM
Senior Financial Analyst
+1 908 439 2200, ext. 5573

Sharon Marks
Associate Director
+1 908 439 2200, ext. 5477

Christopher Sharkey
Manager, Public Relations
+1 908 439 2200, ext. 5159

Jim Peavy
Director, Communications
+1 908 439 2200, ext. 5644


OLDWICK - MARCH 25, 2021 10:33 AM (EDT)
AM Best has assigned a Financial Strength Rating of A- (Excellent) and a Long-Term Issuer Credit Rating of “a-” to Healthcare Providers Insurance Company and its reinsured affiliate, HPIC Risk Retention Group. The outlook assigned to these Credit Ratings (ratings) is stable. Both companies are domiciled in Charleston, SC and are members of Healthcare Providers Insurance Group (HPIC).

The ratings reflect HPIC’s balance sheet strength, which AM Best assesses as very strong, as well as its strong operating performance, limited business profile and appropriate enterprise risk management.

The group’s risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), is in the strongest category and AM Best expects it to remain at a similar level in future years. As a reciprocal insurer, the majority of capital at the lead company is allocated to subscribers’ surplus capital accounts, which are required to be returned to former members over future periods. The balance sheet strength assessment also considers the group’s low underwriting leverage metrics, modestly elevated investment leverage and historically redundant loss reserves.

Strong operating performance has enabled the group to grow its surplus while also returning a significant amount of capital to insureds. Underwriting results have been strong and outperform peers in the medical professional liability (MPL) composite. Furthermore, total return metrics have been very favorable.

HPIC provides professional liability and workers’ compensation insurance to health care facilities and physicians, primarily in Mississippi. The limited business profile assessment reflects elevated concentration risk, which exposes the group to risks associated with changes in underwriting cycles, loss cost trends, health care delivery and the legal, economic and regulatory environment. The strategy going forward involves careful expansion of the group’s geographic footprint. Although this brings a moderate degree of execution risk, HPIC has an experienced management team in place to mitigate these concerns. AM Best considers the group’s risk-management capabilities appropriate for the group’s risk profile.

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 Guide to 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 credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City.

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