AM Best Revises Outlooks to Positive for Members of Healthcare Providers Insurance Group
08 Mayo 2024 - 8:53AM
Business Wire
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
Healthcare Providers Insurance Company and its reinsured affiliate,
HPIC Risk Retention Group. Both companies are domiciled in
Charleston, SC, and are members of Healthcare Providers Insurance
Group (HPIC).
The Credit Ratings (ratings) reflect HPIC’s balance sheet
strength, which AM Best assesses as very strong, as well as its
strong operating performance, limited business profile and
appropriate enterprise risk management.
The positive outlooks reflect the continued strengthening of
HPIC’s balance sheet through strong operating results. Surplus
growth has been solid, despite annual distributions to subscribers.
In addition, HPIC’s quality of capital has improved through
proactive efforts to convert subscriber savings’ account balances
into surplus capital accounts. The group maintains the strongest
level of risk-adjusted capitalization, as measured by Best’s
Capital Adequacy Ratio (BCAR). Furthermore, underwriting leverage
metrics are low and compare favorably with the medical professional
liability peer composite average. Lastly, HPIC maintains a
conservative reserving philosophy that has resulted in significant
amounts of favorable development over the years.
Positive rating action may occur from continued strengthening of
HPIC’s balance sheet while the group maintains strong operating
results as management executes its growth and diversification
strategy. Negative rating action may occur if underwriting and/or
overall operating results deteriorate significantly due to
unprofitable growth, adverse reserve development, investment losses
or other factors.
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. For more information,
visit www.ambest.com.
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