A.M. Best Affirms Credit Ratings of The Doctors Company, An Interinsurance Exchange and Its Subsidiaries; Withdraws Credit Ratings of Run-off Entities
Furthermore,
Concurrently,
All companies are wholly owned subsidiaries of The Exchange.
The rating affirmations of The Exchange and TDC Specialty are due primarily to strong balance sheets, long-term operating performance and The Exchange’s leading market position within the
TDC National’s ratings reflect its supportive balance sheet strength, its specialty role within the organization and the implicit support of The Exchange. TDC National is a captive reinsurer assuming liabilities from The Exchange for death, disability and retirement coverages.
All of the ongoing companies within the organization face the challenges associated with being concentrated in MPL lines of business including very competitive soft market pricing; a declining physician market base; a modest trend of increasing claims severity; and declining reserve redundancies. In addition, investment returns have been diminished by the low interest rate environment.
The rating affirmations of APAC, FPIC and OHIC reflect strong balance sheets and run-off status, as all of their new and renewal business has been moved to The Exchange.
Positive rating action could result if key operating performance measures outpace those of the peer MPL composite as the group manages through the current competitive cycle within the MPL insurance market, while maintaining strong risk-adjusted capitalization.
Negative rating action could result from unfavorable trends in claim frequency or severity that materially impair underwriting profitability and lead to deteriorating operating trends or cause weakening in risk-adjusted capitalization.
This press release relates to Credit Ratings that have been published on A.M. Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see A.M. Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Understanding Best’s Credit Ratings. For information on the proper media use of Best’s Credit Ratings and
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