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FOR IMMEDIATE RELEASE
OLDWICK - JULY 14, 2022 12:39 PM (EDT)
AM Best has assigned a Financial Strength Rating (FSR) of A (Excellent) and a Long-Term Issuer Credit Rating (Long-Term ICR) of “a” (Excellent) to Coverys International Insurance Company Designated Activity Company (CIIC) (Ireland). The outlook assigned to these Credit Ratings (ratings) is stable.
Concurrently, AM Best has affirmed the FSR of A (Excellent) and the Long-Term ICRs of “a” (Excellent) of Medical Professional Mutual Insurance Company (ProMutual) (Boston, MA) and its other wholly owned subsidiaries, ProSelect Insurance Company (Omaha, NE), Preferred Professional Insurance Company (PPIC) (Omaha, NE) and Coverys Specialty Insurance Company (Morristown, NJ), as well as ProMutual’s sponsored risk retention group, Coverys RRG, Inc. (Washington, DC). The outlook of these ratings is stable. All companies are members of Coverys Companies (Coverys).
The ratings of CIIC reflect its role as a member of Coverys and the explicit support provided to CIIC through the implementation of a quota share reinsurance agreement with ProMutual, the lead company of Coverys.
The ratings of Coverys reflects its balance sheet strength, which AM Best assesses as strongest, as well as its marginal operating performance, neutral business profile and appropriate enterprise risk management.
The balance sheet strength reflects Coverys’ risk-adjusted capitalization being at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR), supported by low leverage, prudent reserving practices, good quality of capital and ample liquidity. Coverys is one of the leading providers of medical professional liability (MPL) insurance in the United States, ranking fifth in 2021, based on direct premium written. The group is active nationwide; however, its largest market shares are in California, Massachusetts, New York and New Jersey.
In the past five years, the group’s underwriting performance lagged significantly behind its MPL peers, as reflected in its loss and combined ratios. However, Coverys’ underwriting improved significantly in 2021 from multiple years’ rate increases and underwriting actions. AM Best expects this improving trend will continue in 2022 as corrective actions are increasingly reflected in the group’s results.
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 use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.
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.