AM Best Upgrades Issuer Credit Rating of Hospitals Insurance Company, Inc.; Affirms Credit Ratings of Doctors Company Insurance Group’s Members
27 Septiembre 2024 - 1:22PM
Business Wire
AM Best has upgraded the Long-Term Issuer Credit Rating
(Long-Term ICR) to “a+” (Excellent) from “a” (Excellent) and
affirmed the Financial Strength Rating (FSR) of A (Excellent) of
Hospitals Insurance Company, Inc. (HIC) (New York, NY).
Concurrently, AM Best has affirmed the FSR of A (Excellent) and the
Long-Term ICR of “a+” (Excellent) of The Doctors Company, An
Interinsurance Exchange (Napa, CA) and its core subsidiaries (See
below for a list of TDC’s companies.) The outlook of these Credit
Ratings (ratings) is stable. Collectively these companies comprise
the Doctors Company Insurance Group (TDC or TDC Group).
The ratings of TDC reflect the group’s balance sheet strength,
which AM Best assesses as strongest, as well as its adequate
operating performance, neutral business profile and appropriate
enterprise risk management (ERM).
The Long-Term ICR upgrade for HIC reflect the extension of TDC
Group’s ratings due to the company being fully integrated into the
group’s operations since being acquired in 2019. In recent years,
HIC has been successful at retaining its core clientele, which
consists of some of the nation’s largest healthcare systems, as
well as expanding to new members across New York’s admitted
hospital professional liability (HPL) insurance market. The company
is viewed as one of TDC’s strategic business units and has
demonstrated a track record of supporting the group’s strategy. In
addition, HIC provides a material contribution to TDC’s premiums
and earnings. Furthermore, TDC has indicated its willingness to
provide explicit support to HIC if needed.
TDC Group’s balance sheet strength continues to be supported by
the strongest level of risk-adjusted capitalization, as measured by
Best’s Capital Adequacy Ratio (BCAR). In addition, the group
benefits from consistently favorable loss reserve development and a
solid liquidity position. The group’s underwriting and overall
operating performance continues to improve as a result of rate
actions and the benefits of the increased interest rate environment
on net investment income. TDC maintains a strong market position as
the second largest medical professional liability writer in the
United States, based on 2023 direct premiums written. Further, an
appropriate ERM program is in place with a well-defined framework
and risk management capabilities that are closely aligned with the
group’s risk profile.
The FSR of A (Excellent) and the Long-Term ICRs of “a+”
(Excellent) have been affirmed for the following members of the
Doctors Company Insurance Group:
- The Doctors Company, An Interinsurance Exchange
- TDC National Assurance Company
- TDC Specialty Insurance Company
- TDC Special Risks Insurance Company
- The Doctors Company Risk Retention Group, a Reciprocal
Exchange
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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Connor Brach, CFA, FRM Associate Director +1
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