AM Best changes ProAssurance outlook over 'negative trend' in operating performance
Ratings agency AM Best has revised the outlook of specialty insurance company ProAssurance Corporation to negative from stable, expressing concern over its operating performance in recent years.
AM Best said the negative outlooks reflect the "negative trend" in the ProAssurance Group’s operating performance in the recent years, which has resulted in underwriting and operating metrics falling to a level that, although still solid, is more in-line with its peers in the medical professional liability (MPL) industry, instead of out-performing them.
It added, while the group continues to report favourable prior period reserve development, the magnitude of favourable development has declined in recent years and AM Best expects this trend to continue, especially given concerns with regard to rising loss costs in the MPL industry.
Overall, AM Best affirmed ProAssurance's Financial Strength Rating (FSR) of A+ (Superior) and noted that the ratings of reflect its balance sheet strength, as well as its strong operating performance, favourable business profile and appropriate enterprise risk management (ERM).
Additionally, the agency has upgraded the FSR of Eastern Alliance Insurance Company and its affiliates that are now a part of ProAssurance Group, to A+ (Superior) from A (Excellent).
Get all the latest re/insurance industry news with our daily newsletter - sign up here.
London Market Group bids goodbye to market modernisation programme
Verisk stopped selling from products and ordered to pay $125m after patent infringement
AXA XL’s New Energy Risk plans business expansion with strategic hires
Feature: 10 ways insurers are using insurtech to drive new business
