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FOR IMMEDIATE RELEASE
OLDWICK, N.J. - NOVEMBER 03, 2011 12:00 AM (EDT)
A.M. Best Co. has assigned a financial strength rating of A (Excellent) and an issuer credit rating of "a" to Medicus Insurance Company (Medicus) (Austin, TX). The outlook assigned to both ratings is stable.
These ratings recognize the implementation of a 100% quota share reinsurance agreement between Medicus and NORCAL Mutual Insurance Company (NORCAL) (San Francisco, CA). In addition to providing substantial reinsurance support to Medicus, NORCAL will provide the company with administrative services. Medicus also will benefit from NORCAL's leadership position in the medical professional liability market, its long-term profitable operations, history of successful acquisitions and continued support for its members through strong patient safety and risk management programs.
Partially offsetting these positive rating factors are the market risks inherent within the medical professional liability insurance sector including tort reform, price competition and regulatory trends. In addition, due to Medicus' brief history it is exposed to the potential impact of adverse loss experience or insufficient rate structure and the stresses these may cause on resources. Founded in 2006, Medicus writes medical professional liability insurance in 31 states.
The outlook is based on the organization's ability to maintain underwriting results across jurisdictions.
The principal methodology used in determining these ratings is Best's Credit Rating Methodology - Global Life and Non-Life Insurance Edition, which provides a comprehensive explanation of A.M. Best's rating process and highlights the different rating criteria employed. Additional key criteria utilized include: "Risk Management and the Rating Process for Insurance Companies"; "Understanding BCAR for Property/Casualty Insurers"; and "Rating Members of Insurance Groups." Methodologies can be found at www.ambest.com/ratings/methodology.
Founded in 1899, A.M. Best Company is the world's oldest and most authoritative insurance rating and information source.