A.M. Best Co. has affirmed the financial strength rating of A++ (Superior) and issuer credit ratings of “aa+” of The Medical Protective Company (Medical Protective) (Fort Wayne, IN) and its two reinsured affiliates, MedPro RRG Risk Retention Group and AttPro RRG Reciprocal Risk Retention Group (both domiciled in the District of Columbia). The outlook for all ratings is stable.
These ratings reflect Medical Protective’s excellent capital strength, strong national business profile and extended trends of favorable operating performance. The company’s solid underwriting performance is driven by conservative reserving practices, disciplined underwriting standards and a proactive claim handling philosophy. The ratings also consider the leading market position the organization holds across multiple jurisdictions. Furthermore, these ratings continue to benefit from the implicit and explicit support provided by Medical Protective’s ultimate parent, Berkshire Hathaway Inc. (Berkshire) (NYSE: BRK.A and BRK.B).
This support is in the form of a pair of significant reinsurance transactions with two Berkshire subsidiaries, Columbia Insurance Company and National Indemnity Company. In addition to these agreements, Berkshire has established an extended track record of supporting its member companies.
Partially offsetting these positive rating factors are Medical Protective’s product concentration in the highly cyclical medical professional liability market and its above average concentration levels in select investments.
The methodology used in determining these ratings is Best’s Credit Rating Methodology, which provides a comprehensive explanation of A.M. Best’s rating process and contains the different rating criteria employed in the rating process. Key criteria utilized include: “Risk Management and the Rating Process for Insurance Companies”; “Understanding BCAR for Property/Casualty Insurers”; and “Rating Members of Insurance Groups.” Best’s Credit Rating Methodology can be found at www.ambest.com/ratings/methodology.
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