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Best’s News & Research Service - August 06, 2015 02:20 PM (EDT)

A.M. Best Upgrades Issuer Credit Rating of Community Hospital Alternative For Risk Transfer (A Reciprocal Risk Retention Group)

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Oldwick //BestWire// - A.M. Best has upgraded the issuer credit rating (ICR) to "bbb+" from "bbb" and affirmed the financial strength rating (FSR) of B++ (Good) of Community Hospital Alternative For Risk Transfer (A Reciprocal Risk Retention Group) (CHART) (headquartered in Upper St. Clair, PA). The outlook for both ratings has been revised to positive from stable.

The ICR upgrade reflects strong underwriting and operating results from favorable reserve development, driving significant improvement in capitalization, and a focused business strategy partially offset by the challenges of a narrow business profile as a mono-line medical professional liability (MPL) writer with limited geographic diversification.

CHART continues to execute its underwriting discipline for actuarially needed premium in later stages of an ongoing soft MPL market. In CHART's loss experience, frequency has resumed a gradual downward trend and severities continue to decline. Expense ratios are generally low as CHART directly selects and underwrites its member hospitals. Through its strong underwriting, CHART has more than doubled its surplus over the five-year period that ended Dec. 31, 2014. CHART's excellent loss performance and claims management have also reduced reserve requirements for its existing book of business, further enhancing the company's capital adequacy, as measured by Best's Capital Adequacy Ratio (BCAR).

The positive outlook on the ratings reflects the potential for the company to attain a higher rating level within the next one to two years if its strong operating performance and robust financial condition further improve.

This press release relates to rating(s) 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 visit A.M. Best's Ratings & Criteria Center.

A.M. Best Company is the world's oldest and most authoritative insurance rating and information source.



Financial Strength Risk Retention Groups Press Release Insurance Issuer Credit Rating Medical Malpractice Liability Insurance Medical Professional Liability Best's Credit Rating Action Rating Event


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