AM Best Withdraws Credit Ratings of Michigan Professional Insurance Exchange

Business Wire

OLDWICK, N.J.--(BUSINESS WIRE)--
AM Best has affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of “a-” (Excellent) of Michigan Professional Insurance Exchange (MPIE) (Grand Rapids, MI). The outlook of these Credit Ratings (ratings) is stable. Concurrently, AM Best has withdrawn these ratings as the company has requested to no longer participate in AM Best’s interactive rating process.

The ratings reflect MPIE’s balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management. The ratings also reflect rating enhancement provided by Curi Insurance Group.

MPIE’s balance sheet strength assessment is supported by the strongest level of risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), and is underpinned by a significant reduction in underwriting risk following MPIE being placed into run-off effective Jan. 1, 2024. This followed its 2023 acquisition and the related loss portfolio transfer and quota share reinsurance agreements by and among Constellation Solutions, Inc., and MMIC Insurance, Inc. (MMIC), which are subsidiaries of Curi Holdings, Inc. Under these agreements, 100% of MPIE's net loss, loss adjustment expenses, and unearned premium reserves were ceded to MMIC. All eligible policies were renewed by MMIC. MPIE’s balance sheet strength assessment also reflects the exchange’s limited scope and decline in surplus as all subscriber savings accounts and unassigned surplus as of the date of the acquisition have been paid to subscribers. The exchange does benefit from a liquid investment portfolio and has a history of prudent reserving and favorable development. Nevertheless, future earnings prospects are limited due to recent changes in business strategy.

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 Guide to Best's Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.