Recent Ratings Roundup: Physicians Mutual; Fairfield; Madison

A.M. Best Co. has affirmed the financial strength rating (FSR) of “B++” (Good) and assigned an issuer credit rating (ICR) of “bbb+” to Seattle-based Physicians Insurance Mutual Group and its members, Physicians Insurance A Mutual Company and its reinsured subsidiary, Western Professional Insurance Company. The outlook for the FSR has been revised to positive from stable, and the outlook assigned to the ICR is positive. “The ratings reflect Physicians Insurance Mutual Group’s excellent risk-adjusted capitalization, conservative reserving philosophy, aggressive claims defense position and implementation of re-underwriting initiatives contributing to much improved operating profitability and growth in policyholders’ surplus since 2002,” said Best. The rating is also based on the Group’s “specialty expertise and leading business position in writing professional liability insurance for health care providers in Washington,” where it has “approximately 65 percent of the available market.”

A.M. Best Co. has issued the following correction to the previously published issuer credit rating (ICR) on Stamford, Conn.-based Fairfield Insurance Company:” The ICR is being corrected to “aa-“from “a+” and is not reflective of any change in the financial position of the company or A.M. Best’s opinion on the company’s financial strength. The financial strength rating (FSR) of “A+” (Superior) of Fairfield Insurance Company remains unchanged.

A.M. Best Co. has affirmed the financial strength rating (FSR) of “A-” (Excellent) and assigned an issuer credit rating (ICR) of “a-” to Madison Insurance Company of Atlanta, GA. with a stable outlook. “The rating reflects the company’s excellent capitalization, consistent operating profitability and the support and financial benefits derived from its ultimate parent, SunTrust Banks, Inc., one of the leading commercial banking organizations in the United States,” said Best.