19 July 2017Analysis

AM Best gives 'superior' rating to Berkshire Hathaway medical RRG

Ratings agency AM Best has affirmed the Financial Strength Rating of A++ (Superior) of the members of MedPro Group.

The ratings apply to The Medical Protective Company (Fort Wayne, IN), its affiliates, Princeton Insurance Company (Princeton, NJ). (Oklahoma City, OK), Commercial Casualty Insurance Company (Fort Wayne, IN) and Atlanta International Insurance Company (Flushing, NY), 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 of the the ratings is stable, and reflects MedPro’s excellent balance sheet strength, long-term operating performance, and the significant market position it maintains in the medical professional liability (MPL) sector.

AM Best stated the ratings also benefit from the explicit and implicit financial support provided by the ultimate parent, Berkshire Hathaway, which includes reinsurance programs, investment opportunities and capital support.

Partially offsetting these positive rating factors are the inherent challenges associated with being a predominately mono-line MPL insurer, particularly as they relate to price competition, changing market dynamics, potential changes in legislative (tort) reform, increasing loss cost trends and regulatory challenges.