Major Rating Factors: Fair overall results on stability tests (3.4 on a scale of 0 to 10) including potential drain of affiliation with ProAssurance Corp. Good overall profitability index (5.1) despite operating losses during 2019. Return on equity has been fair, averaging 9.3% 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 (7.6) based on excellent current risk adjusted capital (severe and moderate loss scenarios), despite some fluctuation in capital levels. Ample reserve history (7.0) that can protect against increases in claims costs.
Stability Factors: A - Financial problems or weaknesses of a parent or affiliate company. R - Concerns about the financial strength of its reinsurers. T - Significant trends in critical asset, liability, income or expense items.
Principal Lines of Business: Med mal (99.4%), other (0.6%)
Licensed in: All states except NY, PR
Principal Investments: Investment grade bonds (74.6%), non investment grade bonds (5.5%), real estate (1.5%), common stock (0.6%), cash (0.6%), preferred stock (0.4%), other (16.7%)