AM Best Revises Outlooks to Positive for Minnesota Lawyers Mutual Insurance Company and MLM Risk Retention Group, Inc.

Business Wire

OLDWICK, N.J.--(BUSINESS WIRE)-- AM Best has revised the outlooks to positive from stable and affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of “a-” of Minnesota Lawyers Mutual Insurance Company (Minneapolis, MN) and MLM Risk Retention Group, Inc. (Washington DC). These companies are collectively referred to as MLM Group.

The ratings reflect MLM Group’s balance sheet strength, which AM Best categorizes as strongest, as well as its marginal operating performance, neutral business profile and appropriate enterprise risk management (ERM).

The revision of the outlooks to positive reflects MLM Group’s improved operating performance resulting from the implementation a number of initiatives designed to reduce underwriting volatility and improve rate adequacy. Underwriting performance has benefited from favorable reserve development and compares well with the composite and peer averages. MLM Group has maintained high policyholder retention levels despite strong competition due to its commitment to members of the legal profession, knowledge of the legal environment and the payment of policyholder dividends.

Risk-adjusted capitalization remains strongest mostly due to conservative underwriting leverage measures and loss reserving practices, although policyholder surplus growth has been tempered by the payment of policyholder dividends. MLM Group’s business profile is neutral due to its good geographic spread of risk, as business is written in over 15 states. However, there is concentration of underwriting risk in the legal professional liability line of business. The group’s ERM is appropriate, as capabilities are in line with the moderate risk profile.

This press release relates to Credit Ratings that have been published on AM 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 AM 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 AM Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and AM Best Rating Action Press Releases.

AM Best is a global rating agency and information provider with a unique focus on the insurance industry. Visit www.ambest.com for more information.

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Janet Hernandez

Senior Financial Analyst

+1 908 439 2200, ext. 5767

janet.hernandez@ambest.com

Richard Attanasio

Senior Director

+1 908 439 2200, ext. 5432

richard.attanasio@ambest.com

Christopher Sharkey

Manager, Public Relations

+1 908 439 2200, ext. 5159

christopher.sharkey@ambest.com

Jim Peavy

Director, Public Relations

+1 908 439 2200, ext. 5644

james.peavy@ambest.com