20% of RRGs Hold Ratings from A.M. Best and Demotech

Copyright 2010 Insurance Communications The Risk Retention Reporter

July 2010

Vol. 24, No. 7

645 words

20% of RRGs Hold Ratings from A.M. Best and Demotech

Fifty two risk retention groups, just over 20% of all 250 operating RRGs, now hold Financial Stability Ratings (FSRs) assigned by either A.M. Best or Demotech, Inc. When the Risk Retention Reporter last conducted this assessment in February 2009, there were only 43 RRGs rated, 16% of the 263 RRGs operating at that time. Of the 52 that are now rated, only two have received ratings from both companiesParatransit Insurance Co., a RRG and Preferred Contractors Insurance Co. RRG.

 

The FSRs assigned by both Best and Demotech are given to RRGs that subscribe to their rating services. Bests ratings represent an opinion based on a comprehensive quantitative and qualitative evaluation of a RRGs balance sheet strength, operating performance, and business profile. Bests ratings range from A++ to F. The number of RRGs with an A.M. Best FSR of A or higher has increased from five to eight since February 2009. MedPro Risk Retention Group is the only RRG with the coveted A++ rating.

 

Demotechs ratings range from A (double prime) to L (limited) and are based upon a series of quantitative ratios and quantitative considerations which together comprise its Financial Stability Model. In February 2009, there were 20 Demotech rated RRGs and all were rated A (exceptional). Now there are 21 rated groups18 RRGs rated A and three more rated A (unsurpassed). Five RRGs that were rated in 2009 no longer appear on the list. These RRGs have either merged into other RRGs, have been retired, or no longer meet the criteria for a letter rating.

 

The following tables break out RRGs rated by each of the rating agencies.

 

A.M. Best Rated RRGS

 

MedPro RRG Risk Retention Group A++

 

American Contractors RRG A

 

American Safety RRG A

 

Housing Authority RRG, Inc. A

 

ICI Mutual Insurance Company RRG A

 

Ophthalmic Mutual Insurance Co. RRG A

 

Terra Insurance Co. (A RRG) A

 

United Educators Insurance, A Reciprocal RRG A

 

Alliance of Nonrofits for Insurance, RRG A-

 

Architects and Engineers Insurance Co., A RRG A-

 

Attorneys Liability Protection Society, Inc., A RRG A-

 

California Healthcare Ins, RRG A-

 

Caring Communities, a Reciprocal RRG A-

 

Global International Ins. Co. Inc., a RRG A-

 

Health Providers Ins. Reciprocal, A RRG A-

 

Indemnity Insurance Corporation of DC, RRG A-

 

MedAmerica Mutual RRG Inc A-

 

Paratransit Ins. Co., a Mutual RRG A-

 

Restoration Risk Retention Group A-

 

STICO Mutual Ins. Co. RRG A-

 

Titan Ins. Co., Inc., A RRG A-

 

Western Pacific Mutual Ins. Co., A RRG A-

 

Preferred Physicians Medical RRG, Inc. B++

 

Security America Risk Retention Group B++

 

Consumer Specialties Insurance Co RRG B+

 

Eastern Dentists Ins. Co. (A Dental Society RRG) B+

 

Evergreen U.S.A. RRG, Inc. B+

 

Golden Insurance Company B+

 

National Contractors Insurance Company RRG B+

 

National Independent Truckers Ins. Co., RRG B+

 

Preferred Contractors Insurance Company RRG B+

 

United Contractors Insurance Company Inc., A RRG B+

Demotech Rated RRGs

 

Allied Professionals Ins. Co., A RRG, Inc. A'

 

Applied Medico-Legal Solutions RRG A'

 

PARATRANSIT INSURANCE COMPANY, A MUTUAL RRG A'

 

Aegis Healthcare Risk Retention Group A

 

American Builders Insurance Co. RRG, Inc. A

 

American Trucking and Transportation Insurance Company a RRG A

 

Charitable Service Providers Reciprocal RRG A

 

Continuing Care RRG, Inc. A

 

Emergency Medicine Professional Assurance Co. RRG A

 

Global Hawk Insurance Company RRG A

 

Healthcare Industry Liability Reciprocal Co., A RRG A

 

Intermodal Ins. Co., A RRG A

 

J.M. Woodworth RRG, Inc. A

 

Lewis & Clark LTC RRG A

 

Midwest Provider Ins. Co., A RRG A

 

National Service Contract Ins. Co. RRG, Inc. A

 

New York Healthcare Ins. Co., Inc., A RRG A

 

Ponce De Leon LTC RRG, Inc. A

 

Preferred Contractors Ins. Co. RRG, LLC A

 

Premier Physicians Insurance Company, Risk Retention Group A

 

Sigma RRG, Inc. A

 

July 19, 2010

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