A.M. Best has reaffirmed its A- (Excellent) rating of ProMutual Group for 2005.
The A.M. Best rating is based on the organization’s independent opinion of the company’s strong financial underpinnings, overall capitalization, conservative reserve practices and underwriting initiatives. This is the ninth consecutive year ProMutual Group has received an A- rating which further confirms the company’s position as a leading force in the medical malpractice industry.
Richard Brewer, president and CEO of ProMutual Group, noted, “This is an acknowledgement by a highly respected rating organization that we are taking the right steps to keep the company financially secure for our policyholders.”
In addition to evaluating past performance, A.M. Best’s rating gives an indication of how the company may be expected to perform in the future. This year the organization noted that ProMutual Group’s operating results improved over the last year due to increases in rates, re-underwriting initiatives, and reductions in the application of schedule credits. These changes indicate a positive future for ProMutual Group in 2005.
Brewer noted that ProMutual Group’s results had improved despite a challenging medical malpractice climate in the states in which the company operates: Connecticut, Maine, Massachusetts, New Hampshire, New Jersey, Rhode Island and Vermont. Four of these states are now considered medical malpractice crisis states by the American Medical Association.
“Given the current malpractice climate, it was a challenge to improve our results in such an unsettled marketplace. I am pleased that we were able to accomplish our goals and that A.M. Best has recognized our efforts,” said Brewer.
Brewer also added, “Unfortunately, our policyholders directly felt the impact of the necessary actions we were forced to take. The fact that most remained with us through this difficult period is a testament to their loyalty and their confidence in the management of ProMutual Group. They truly deserve our thanks.”
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