JUNE 17, 2021 02:07 PM (EDT)
AM Best Revises Outlooks to Positive for California Healthcare Insurance Company, Inc., A Risk Retention Group
|Connor Brach, FRM |
Senior Financial Analyst
+1 908 439 2200, ext. 5573
Senior Financial Analyst
+1 908 439 2200, ext. 5039
Manager, Public Relations
+1 908 439 2200, ext. 5159
+1 908 439 2200, ext. 5644
FOR IMMEDIATE RELEASE
OLDWICK - JUNE 17, 2021 02:07 PM (EDT)
AM Best has revised the outlooks to positive from stable and affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of “a-” (Excellent) of California Healthcare Insurance Company, Inc, A Risk Retention Group (CHI) (headquartered in Roseville, CA).
The Credit Ratings (ratings) reflect CHI’s balance sheet strength, which AM Best assesses as strongest, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management.
The positive outlooks reflect favorable trends in CHI’s performance relative to similarly assessed peers in the medical professional liability (MPL) insurance industry. Underwriting results have been consistently profitable and exhibited low volatility despite broader deterioration across the MPL market. Premium rebates are distributed to insureds based on CHI’s financial performance, at the discretion of the board of directors. Rebates have proven to be an effective policyholder retention tool, through rewarding member-owners for loyalty and favorable loss experience. Since rebates effectively reduce reported net premiums written and earned, AM Best considers the company’s operating performance before and after rebates, both of which support the revised outlooks. CHI’s business profile continues to be limited, primarily due to product and geographic concentration in professional liability insurance for independent hospitals and other health care entities throughout California.
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.