Allied Professionals Insurance Company has been placed under review with negative implications by rating agency AM Best.
The rating agency said that the action reflects its concerns with the decline in risk-adjusted capitalisation caused by advancement in reserve positions from deteriorating loss experience in the chiropractic specialty along with growth in the overall premium base.
“Company management has presented several remedial actions to reverse the negative claims trend and strengthen capitalisation. Nonetheless, there is a degree of execution risk involved with the implementation of APIC's plan of improvement and uncertainty regarding the overall impact these actions will have upon the company's balance sheet and income statement in 2014 and 2015,” said the agency.
The ratings will remain under review pending the implementation of the company's action plan and completion of AM Best's analysis on how these initiatives impact APIC's risk-adjusted capitalisation and financial performance in the near and mid-term.
Allied Professionals Insurance Company, AM Best, North America