S&P’s Puts Attorneys Liability Protection Ratings on WatchNeg

March 18, 2003

Standard & Poor’s has placed its ‘A-‘ counterparty credit and financial
strength ratings on Attorneys Liability Protection Society Inc., A Risk
Retention Group (ALPS) on CreditWatch with negative implications because of the company’s recently filed annual statement announcing a $7.3 million increase in its incurred loss and loss adjustment expenses.

“The reserve strengthening was primarily allocated to accident years 1998 through 2001, following an extensive claims, rate and reserve review process undertaken by the company over the past 12 months,” observed credit analyst Donovan Fraser. He added that the ratings on ALPS could be lowered up to a full category from the current ‘A-‘.

Standard & Poor’s intends to meet with the company’s senior management in the next few weeks, at which time the CreditWatch status of the ratings is expected to be resolved.

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