Best Rating Lowered On Largest Med-Mal Writer
NU Online News Service, Feb. 20, 9:25 a.m. EST?A.M. Best Co. has lowered the financial strength rating of Medical Liability Mutual Insurance Company to B++ (Very Good) from A- (Excellent).
MLMIC Group, based in New York City, is the largest medical malpractice insurer in the U.S., and has in recent years expanded its market from a physician-owned insurer writing malpractice in New York State only to a group of companies writing a variety of coverages in multiple states.
A.M. Best also downgraded two MLMIC subsidiaries: West Windsor, N.J.-based Princeton Insurance Company to B (Fair) from B+ (Very Good); and Columbus, Ohio-based OHIC Insurance Company to B++ (Very Good) from A- (Excellent).
OHIC recently announced that Raymond R. Mazzotta has been appointed as its new chief executive officer, succeeding Gerald Cassidy, who remains as chairman of the board.
The rating action, Best said, is in response to a decline in MLMIC Group's policyholder's surplus, unrealized capital losses on investments, and a $280 million increase in loss reserves, mainly due to losses in the New York and New Jersey medical malpractice insurance markets.
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