A.M. Best Withdraws Ratings of Physicians Insurance Program Exchange

OLDWICK, N.J.--(BUSINESS WIRE)-- A.M. Best has affirmed the financial strength rating of B+ (Good) and the issuer credit rating of “bbb-” of Physicians Insurance Program Exchange (PIPE) (Upper Gwynedd, PA). The outlook for both ratings remains negative. Concurrently, A.M. Best has withdrawn the ratings upon management’s request to no longer participate in A.M. Best’s interactive rating process.

The ratings reflect PIPE’s adequate risk-adjusted capitalization and its specialty niche orientation and expertise in the medical professional liability (MPL) insurance segment. These positive rating aspects are offset by a decline in operating performance, inherent risks due to its single line concentration or risk in MPL in Pennsylvania. In addition, pressure is on the ratings due to declining premium volume, above-average expense ratios, limited financial flexibility and reinsurance coverage, as well as strong competition for market share.

This press release relates to rating(s) 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 visit A.M. Best’s Ratings & Criteria Center.

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 © 2015 by A.M. Best Company, Inc. ALL RIGHTS RESERVED.

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A.M. Best

Angelo Lozano

Financial Analyst

(908) 439-2200, ext. 5169

angelo.lozano@ambest.com

or

Charles M. Huber

Assistant Vice President

(908) 439-2200, ext. 5122

charles.huber@ambest.com

or

Christopher Sharkey

Manager, Public Relations

(908) 439-2200, ext. 5159

christopher.sharkey@ambest.com

or

Jim Peavy

Assistant Vice President, Public Relations

(908) 439-2200, ext. 5644

james.peavy@ambest.com

Source: A.M. Best Company, Inc.