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FOR IMMEDIATE RELEASE
OLDWICK - JANUARY 30, 2018 02:21 PM (EST)
A.M. Best has removed from under review with positive implications and upgraded the Financial Strength Rating to A- (Excellent) from B++ (Good) and the Long-Term Issuer Credit Rating to “a-” from “bbb+” of Eastern Dentists Insurance Company (A Dental Society Risk Retention Group) (EDIC) (Burlington, VT). The outlook assigned to these Credit Ratings (ratings) is stable.
The ratings of EDIC were placed under review in October 2017 in conjunction with the release of the updated Best’s Credit Rating Methodology (BCRM). The ratings have been removed from under review, as A.M. Best has completed its analysis of EDIC under the updated BCRM.
The ratings reflect EDIC’s balance sheet strength, which A.M. Best categorizes as very strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management (ERM).
EDIC is the market leader in providing medical professional liability coverage to dentists in Massachusetts while also extending its product offerings in the Northeast and Mid-Atlantic.
Balance sheet strength is supported by its level of risk-adjusted capitalization, excellent liquidity, modest underwriting and investment leverage, and the imbedded equity in loss reserves. Surplus growth has been positive year over year. EDIC utilizes an ERM program that A.M. Best considers to be appropriate relative to its inherent risks, and to quantify and address risks and opportunities within its markets and line of business.
EDIC’s limited business profile is characterized by its concentration in the dental professional liability sector. This narrow product scope makes EDIC susceptible to potential market displacement, competition and changes in market dynamics, as they relate to the delivery of dental healthcare. These concerns are mitigated partially by the company’s long-standing presence in this space and the value provided to its members as a risk retention group, as well as in providing quality claims management and loss control programs for its insureds.
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.
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