Best’s News & Research Service - September 01, 2017 01:26 PM (EDT)
A.M. Best Assigns Credit Ratings to MLM Risk Retention Group, Inc.
- September 01, 2017 01:26 PM (EDT)
Oldwick //BestWire// - A.M. Best has assigned a Financial Strength Rating of A- (Excellent) and a Long-Term Issuer Credit Rating of “a-” to MLM Risk Retention Group, Inc. (MLMRRG) (Washington DC). The outlook assigned to these Credit Ratings (ratings) is stable.
MLMRRG was created to provide specialty insurance products to entities associated with the legal profession.
The ratings reflect MLMRRG’s strategic alliance with Minnesota Lawyers Mutual Insurance Company (MLM) and the material explicit support that MLMRRG receives in the form of a reinsurance agreement. The ratings also consider the synergies provided by MLM via a management agreement, under which MLMRRG receives marketing, underwriting, claims handling and company administration.
The rating factors are partially offset by MLMRRG’s status as a start-up company entering new geographic areas with a concentration in one line of business and the potential risk of losses that result. Furthermore, the ratings reflect the somewhat limited permanency of MLMRRG’s capital, which is in the form of a surplus note. This is mitigated by the long duration of the note and the fact that the note is held by MLM.
This press release relates to Credit Ratings 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 see A.M. Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Understanding Best’s Credit Ratings. For information on the proper media use of Best’s Credit Ratings and A.M. Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and A.M. Best Rating Action Press Releases.
A.M. Best is the world’s oldest and most authoritative insurance rating and information source.