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FOR IMMEDIATE RELEASE
OLDWICK - AUGUST 08, 2017 02:34 PM (EDT)
A.M. Best has affirmed the Financial Strength Rating of B++ (Good) and the Long-Term Issuer Credit Rating of “bbb” of Mountain States Healthcare Reciprocal Risk Retention Group (MSH) (Billings, MT). The outlook of these Credit Ratings (ratings) remains negative. Concurrently, A.M. Best has withdrawn the ratings as the company has requested to no longer participate in A.M. Best’s interactive rating process.
The rating affirmations reflect MSH’s balance sheet strength and market position as a leading provider of medical professional liability (MPL) insurance in Montana and Wyoming. Negative rating factors include deterioration in the company’s risk-adjusted capitalization and operating performance in 2016, following significant adverse loss reserve development on prior accident years, and the challenges faced by MSH to return underwriting results back to historical profitable levels, despite management’s corrective actions. The ratings also reflect the inherent challenges associated with having a concentration of underwriting risk in hospital and MPL insurance, and MSH’s above-average risk profile with regard to high policy limits relative to surplus and elevated common stock leverage, which remained in excess of 100% of surplus at March 31, 2017.
This press release relates to Credit Ratings 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 see A.M. 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 A.M. Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and A.M. Best Rating Action Press Releases.
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