AM Best Revises Outlooks to Positive for Members of Healthcare Providers Insurance Group

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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