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FOR IMMEDIATE RELEASE
OLDWICK - OCTOBER 01, 2020 02:07 PM (EDT)
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 Community Hospital Alternative For Risk Transfer (A Reciprocal Risk Retention Group) (CHART) (Burlington, VT).
The ratings reflect CHART’s balance sheet strength, which AM Best categorizes as very strong, as well as its strong operating performance, limited business profile and appropriate enterprise risk management.
The positive outlooks reflect the continued strengthening of CHART’s balance sheet through strong operating results. After multiple years of net declines in membership, primarily due to merger & acquisition activity in the healthcare industry, the company’s hospital member base has stabilized more recently. Member growth occurred in 2019 and has again thus far in 2020, attributed to recently established relationships with independent agents and brokers. Hardening pricing conditions in the excess hospital professional liability insurance market should further increase CHART’s value proposition to both current and prospective members. Key balance sheet metrics, including underwriting leverage ratios, Best’s Capital Adequacy Ratio (BCAR) scores and its surplus size compare favorably with peers in the medical professional liability insurance industry that have higher balance sheet strength assessments.
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 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 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 New York, London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City.