AM Best downgrades NCMIC’s credit

AM Best has download the issuer credit rating of NCMIC’s group members, revising the outlook from ‘stable’ to ‘negative’.

This re-rating applies to debt issued by all NCMIC group members including NCMIC Insurance Company, Professional Solutions Insurance Company and NCMIC Risk Retention Group.

The ‘excellent’ financial strength ratings of the companies remains unchanged.

AM Best has attributed the long-term issuer credit rating downgrade to “decreasing profitability trends” in the groups underwriting performance.

A statement from AM Best accompanying the downgrade announcement read: “Recent efforts to diversify into other professional liability lines and assumed reinsurance has resulted in significant volatility and created a drag on core earnings.

“Although overall operating results remain profitable, reported results in recent years are more in line with industry averages.”