Major Rating Factors:
Fair overall results on stability tests (3.7 on a scale of 0 to 10) including potential drain of affiliation with ProAssurance Corp and weak results on operational trends. The largest net exposure for one risk is acceptable at 2.7% of capital. Fair profitability index (3.6). Good expense controls. Return on equity has been fair, averaging 10.5% over the past five years.
Other Rating Factors:
Good liquidity (6.7) with sufficient resources (cash flows and marketable investments) to handle a spike in claims. Strong long-term capitalization index (7.8) based on excellent current risk adjusted capital (severe and moderate loss scenarios), despite some fluctuation in capital levels. Ample reserve history (9.1) that helps to protect the company against sharp claims increases.
Stability Factors:
A - Financial problems or weaknesses of a parent or affiliate company.
T - Significant trends in critical asset, liability, income or expense items.
Principal Lines of Business:
Med mal (100.0%)
Licensed in:
All states except PR
Principal Investments:
Investment grade bonds (65.6%), non investment grade bonds (6.9%), real estate (6.8%), other (20.7%)