A.M. Best Assigns Ratings to Attorneys’ Liability Assurance Society and Its Subsidiary

OLDWICK, N.J.--(BUSINESS WIRE)-- A.M. Best Co. has assigned a financial strength rating of A (Excellent) and issuer credit ratings of “a” to Attorneys’ Liability Assurance Society (Bermuda) Ltd.(ALAS Ltd.)(Bermuda) and its wholly-owned subsidiary, Attorneys’ Liability Assurance Society, Inc., A Risk Retention Group (ALAS, Inc.)(Burlington, VT). The outlook assigned to all ratings is stable.

The ratings for ALAS Ltd. and ALAS, Inc. reflect their excellent risk-adjusted capital positions, favorable operating performances and their long-term dedication to the legal professional liability market. In addition, A.M. Best recognizes the extensive loss prevention resources provided to the insured members, along with the group’s exceptional enterprise risk management program.

Partially offsetting these positive rating factors are the risks inherent within the legal professional liability insurance sector including price competition. As a single line writer, the companies are exposed to a low frequency, high severity characteristic from their selected market niches. These factors are somewhat mitigated by their long-term association with their members, diversification over multiple jurisdictions, extensive loss mitigation programs and their effective use of reinsurance.

The outlook is based on the organization’s ability to maintain underwriting and claim success, along with continued management of its capital position.

ALAS, Inc. ratings are based on A.M. Best’s group rating methodology and take into consideration the role and strategic importance the risk retention group plays in the support provided to its members.

Performances by ALAS Ltd. and ALAS, Inc. that could lead to positive rating actions include, but are not limited to, extended favorable operating results with supportive policyholders’ surplus. Items that could have an adverse affect on ALAS Ltd. and ALAS, Inc.’s current ratings include a significant change in the legal professional liability market dynamics, an unfavorable claim and underwriting experience for the companies, shifting policyholders’ surplus positions or extraordinary variations in reinsurance treaties.

The principal methodology used in determining these ratings is Best’s Credit Rating Methodology -- Global Life and Non-Life Insurance Edition, which provides a comprehensive explanation of A.M. Best’s rating process and highlights the different rating criteria employed. Additional key criteria utilized include: “Risk Management and the Rating Process for Insurance Companies”; “Understanding BCAR for Property/Casualty Insurers”; and “Rating Members of Insurance Groups.” Methodologies can be found at www.ambest.com/ratings/methodology.

Founded in 1899, A.M. Best Company is the world's oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com.

Copyright © 2012 by A.M. Best Company, Inc.ALL RIGHTS RESERVED.

A.M. Best CompanyRobert Raber, 908-439-2200, ext. 5696
Financial Analyst
[email protected]
orRachelle Morrow, 908-439-2200, ext. 5378
Senior Manager, Public Relations
[email protected]
orHenry Witmer, 908-439-2200, ext. 5097
Vice President
[email protected]
orJim Peavy, 908-439-2200, ext. 5644
Assistant Vice President, Public Relations
[email protected]

Source: A.M. Best Company