A.M. Best Upgrades Issuer Credit Ratings of the Doctors Company Insurance Group Members

A.M. Best has upgraded the Long-Term Issuer Credit Ratings
(Long-Term ICR) to “a+” from “a” and affirmed the Financial Strength
Rating (FSR) of A (Excellent) of the members of the Doctors Company
Insurance Group. The outlook of these Credit Ratings (ratings) is
stable. (See below for a list of companies.)

The ratings reflect the Doctors Company Insurance Group’s balance sheet
strength, which A.M. Best categorizes as strongest, as well as its
adequate operating performance, neutral business profile and appropriate
enterprise risk management (ERM).

The balance sheet strength is supported by strongest risk-adjusted
capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR),
consistently favorable loss reserve development, reasonable liquidity
and low financial leverage. The group’s underwriting performance also
has been solid over the past number of years, with most return metrics
in line with its peer group. The business profile assessment reflects
the group’s standing as the second-largest medical professional
liability (MPL) insurance provider in the United States, and the largest
physician-owned MPL insurance provider. The group is endorsed by
physician professional societies, representing more than 200,000
doctors, across the country. The group’s wide geographic diversification
is partially offset by high product concentration, as nearly all of its
business is in the MPL insurance line. With regard to its ERM, the group
has a culture of risk awareness and a framework to identify and manage
various different types of risks, a process A.M. Best views as
appropriate for its risk profile.

Further positive rating action could result if key operating performance
measurers outpace those of the peer MPL composite as the group manages
through the current competitive cycle within the MPL insurance market
while maintaining its balance sheet strength assessment at the strongest
level. Negative rating action could result from adverse reserve
development or unfavorable trends in claims frequency or severity that
materially impair underwriting profitability and lead to deteriorating
operating trends or cause weakening in risk-adjusted capitalization.

The Long-Term ICRs have been upgraded to “a+” from “a” and the FSR of A
(Excellent) affirmed for the members of the Doctors Company Insurance

This press release relates to Credit Ratings that have been published
on A.M. 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 A.M. Best’s Recent
Rating Activity web page. For additional information
regarding the use and limitations of Credit Rating opinions, please view Understanding
Best’s Credit Ratings. For information on the proper media
use of Best’s Credit Ratings and A.M. Best press releases, please view Guide
for Media – Proper Use of Best’s Credit Ratings and A.M. Best Rating
Action Press Releases.

A.M. Best is a global rating agency and information provider with a
unique focus on the insurance industry. Visit www.ambest.com
for more information.

Copyright © 2018 by A.M. Best Rating Services, Inc. and/or its

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