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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.
80 Glastonbury Boulevard
Glastonbury, CT 06033
T: 800.228.0287 ext. 283