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FOR IMMEDIATE RELEASE

CMIC Group’s A- (Excellent) Rating Affirmed by A.M. Best; Outlook Revised

GLASTONBURY, CT – May 2, 2018 – CMIC Group (the Company), a leading member-owned medical professional liability insurance provider, was recently notified that A.M. Best has affirmed the Company’s financial strength rating of A- (Excellent), and the Long-Term Issuer Credit Ratings of "A-" of Connecticut Medical Insurance Company (CMIC) (Glastonbury, CT) and CMIC Risk Retention Group (District of Columbia).  However, the outlook has been revised from stable to negative.

The revised outlook reflects the negative trend in underwriting performance and the challenges the Company faces to improve results in the near term given the ongoing soft market conditions.  Underwriting results have suffered in 2016 and 2017 due to increased severity following several years of consistently positive underwriting results and corresponding surplus growth.  As well, in 2017 the Company booked a “one-time reserve adjustment” of $8 million to account for previously unidentified retro-dated coverage predominantly within the risk retention group’s modified claims-made book of business.  

Despite the reserve strengthening, the Company’s surplus increased by $10.0 million to $309.5 million as of December 31, 2017 due primarily to unrealized gains.  In terms of financial strength and stability, A.M. Best stated that the Company’s Balance Sheet has received the strongest level of risk-adjusted capitalization rating (BCAR).  They also commented that the Company’s investments are conservative and liquid, while underwriting leverage continues to remain low. 

“Despite these recent developments, our Company continues to be very strong financially and the Board of Directors, Management Team, and staff are working diligently to improve our financial performance during this difficult market cycle,” said Stephen J. Gallant, CEO of CMIC Group. “Likewise, we are reviewing our product offerings to ensure they continue to meet the evolving needs of the marketplace, and we appreciate the continued loyalty and support of our esteemed member physicians and valued distribution partners as we remain committed to the long-term success of the Company.”

About CMIC Group

CMIC Group includes both CMIC and its member affiliate, CMIC Risk Retention Group (CMIC RRG). CMIC Group is a leader in developing innovative insurance programs, services, and solutions for physicians, doctors, healthcare providers, hospitals, and facilities dating back to the origins of CMIC in 1984.  For more information, visit the CMIC Group website at www.cmic.biz.

 

Media Contact:
Michelle Barry
Communications Specialist
80 Glastonbury Boulevard
3rd Floor
Glastonbury, CT 06033
T: 800.228.0287 ext. 283
E-mail: Communications

News Archive

July 16, 2018

Garrett P. Cronin Joins CMIC Group as Director of Underwriting

June 28, 2018

CMIC Group Announces Appointment of Mary Ann Bentz, MD to CMIC Board

June 26, 2018

CMIC Group Announces Appointment of Nicholas Bontempo, MD to CMIC Board

May 2, 2018

CMIC Group’s A- (Excellent) Rating Affirmed by A.M. Best; Outlook Revised

February 14, 2018

Michelle M. Ursini Appointed Director of Marketing and Business Development at CMIC Group

January 9, 2018

CMIC Group Wraps Up 2017 with Many Positive Achievements

December 13, 2017

CMIC Group CFO, Emmanuel (Manny) Zervos, Announces Retirement; Michael Conneely, to Assume Role of CFO

December 7, 2017

CMIC Group CEO, Denise Funk, Announces Retirement; Stephen Gallant,to Assume Role of CEO

November 15, 2017

Paul Darcy, MD Elected Chairman of CMIC Underwriting Committee

November 8, 2017

Edmund Schiavoni, MD Elected President of CMIC RRG Board of Directors

November 2, 2017

John Hornby, MD Elected President and Chairman of CMIC Board of Directors

July 11, 2017

Michael P. Conneely, CPA Joins CMIC Group as Director of Finance

June 28,2017

Stephen J. Gallant Joins CMIC Group as Chief Operating Officer

June 13,2017

A.M. Best Affirms CMIC Group’s A- (Excellent) Rating

March 31,2017

CMIC Group Rated One of the Best Places to Work in Connecticut

March 15,2017

Chairman of CMIC Board of Directors Receives Award

November 9,2016

CMIC Declares 7.5% Dividend for Policyholders in 2017

October 25,2016

CMIC Announces New Loyalty Rewards Program Allocation for 2017

October 11,2016

CMIC Announces 2017 Rates Unchanged for Connecticut and Massachusetts Members

September 27,2016

CMIC Group Announces Appointment of New Director to CMIC RRG Board

Feburary 9, 2016

CMIC Group Employees Select Warm the Children for a $1,500 dollar donation.

January 7, 2016

CMIC Announces Launch of New Mobile Website

 

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