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Atlanta (June 14) – Leading independent insurance analyst, A.M. Best, reaffirmed MagMutual Insurance Company’s A (Excellent) financial strength and credit rating. This 2012 score reasserts the company’s A (Excellent) rating in 2011.
A.M. Best ratings serve as comparisons among national medical professional liability insurance companies and take into account a variety of quantitative and qualitative factors including evaluation of the companies’ balance sheet strength, operating performance and business profile. The rating represents an independent opinion of the company’s financial strength and capability to meet ongoing insurance policy and contract obligations.
“Despite a still volatile economy and healthcare industry, in addition to a highly competitive medical malpractice environment, we are pleased A.M. Best recognized our continued financial strength. This position assures our current and new policyholders that we are positioned and able to defend and support them, giving them the peace of mind to focus on the practice of good medicine,” says MagMutual Chairman and CEO Joseph S. Wilson, MD, Jr.
According to A.M. Best, “The rating is reflective of the group's strong level of risk-adjusted capitalization, favorable underwriting and operating profitability over the recent five-year period…The rating also considers the favorable underwriting results generated by sizeable loss reserve redundancies taken during the past five years, reflective of the group's conservative reserving position.
“Partially offsetting these positive rating factors,” A.M. Best writes, “are the group's concentration risk by product, the highly competitive environment, the potential challenges related to changes to tort reform in its major markets, and the inherent volatility in the medical professional liability line. The outlook reflects the expectation that [MagMutual] will maintain strong capitalization, continue generating positive underwriting results despite the recent loss of a cap on non-economic damages in Georgia, and demonstrate prudent cycle management practices.”
MagMutual provides medical professional liability (malpractice) insurance in Alabama, Arkansas, Florida, Georgia, Kentucky, North Carolina, South Carolina, Tennessee and Virginia. Founded in 1982 by physicians, Atlanta-based MagMutual is one of the largest malpractice insurers in the U.S. with offices throughout the Southeast. Insurance products and services are issued and underwritten by MAG Mutual Insurance Company and its affiliates.
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