A.M. Best said its rating of Physicians Insurance Company of Wisconsin remains under review with negative implications based on risk-adjusted capitalization issues.
Best said the “A-minus” financial strength rating of the Madison, Wis.-based carrier is not commensurate with the company's risk-adjusted capital situation.
PIC Wisconsin was acquired by ProAssurance Group last year. The parent company secured an intercompany reinsurance agreement to meet Best's concerns about its subsidiary' situation.
Best also affirmed the “A-minus” financial strength rating of ProAssurance Group and the Issuer Credit Ratings of “A-minus for ProAssurance and its group-rated members.
“These ratings recognize ProAssurance's fourth-quarter earnings announcement and take into consideration the continued benefits to be gained from price firming and improved claims trends in the medical malpractice sector as well as PRA's favorable earnings prospects for 2007,” Best said in a statement.
The ratings, Best said, also reflect ProAssurance's risk-adjusted capitalization, strong operating performance and leading business position within the medical professional insurance liability sector.
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