OLDWICK, N.J.--(BUSINESS WIRE)--
A.M. Best Co. has affirmed the financial strength rating of A-
(Excellent) and issuer credit rating (ICR) of "a-" of American
Physicians Insurance Company (API) (Austin, TX). A.M. Best
also has affirmed the ICR of "bbb-" of API's parent holding company, American
Physicians Service Group, Inc. (APS) (Austin, TX) [NASDAQ: AMPH]. The
outlook for all ratings is stable.
These ratings continue to reflect API's excellent risk-adjusted capital
position, favorable operating performance, experienced management team
and strong policyholder retention. The ratings also take into
consideration the financial flexibility of APS. The only long-term debt
at the holding company consists of $7 million in mandatorily redeemable
preferred stock, which is to be redeemed at $1 million per year through
2016.
Partially offsetting these positive rating factors are the market risks
associated with being a predominantly single state, monoline medical
professional liability insurer as it relates to price competition, loss
cost trends and regulatory challenges. In addition, API's exposure base
continues to grow, which has led to additional risks in the pricing,
claim and reserving areas. However, these risks are mitigated by the
company's conservative reserve position and excellent risk-adjusted
capital position.
For Best's Ratings, an overview of the rating process and rating
methodologies, please visit www.ambest.com/ratings.
Founded in 1899, A.M. Best Company is a global full-service credit
rating organization dedicated to serving the financial and health care
service industries, including insurance companies, banks, hospitals and
health care system providers. For more information, visit www.ambest.com.
Source: A.M. Best Company
Contact: A.M. Best Company
Analysts
Greg Williams, 908-439-2200, ext. 5815
greg.williams@ambest.com
or
Henry Witmer, 908-439-2200, ext. 5097
henry.witmer@ambest.com
or
Public Relations
Jim Peavy, 908-439-2200, ext. 5644
james.peavy@ambest.com
or
Rachelle Morrow, 908-439-2200, ext. 5378
rachelle.morrow@ambest.com