AM Best Affirms Credit Ratings of NCMIC Group’s Members; Revises Issuer Credit Rating Outlook to Stable

September 15, 2023 at 12:25 PM EDT

AM Best has revised the outlook to stable from negative for the Long-Term Issuer Credit Ratings (Long-Term ICR) and affirmed the Financial Strength Rating (FSR) of A (Excellent) and Long-Term ICRs of “a+” (Excellent) of the members of NCMIC Group (NCMIC). The outlook of the FSR is stable. NCMIC consists of NCMIC Insurance Company, Professional Solutions Insurance Company and NCMIC Risk Retention Group, Inc. All companies are headquartered in Clive, IA.

The Credit Ratings (ratings) reflect NCMIC’s balance sheet strength, which AM Best assesses as strongest, as well as its strong operating performance, neutral business profile and appropriate enterprise risk management.

The revision of Long-Term ICR outlooks to stable from negative reflects improvement in the group’s underwriting and operating performance in recent years as a result of corrective actions taken by management, including rate increases, reductions in limits offered and enhancement of the performance monitoring process, as reflected in pre-policyholder dividend underwriting profits achieved in years 2021, 2022 and through the first six-months of 2023. AM Best expects the group’s higher level of profitability to continue in the near and intermediate term as premiums at higher levels of adequacy earn in and claims trends stabilize. The operating performance assessment of strong is also supported by the group’s very conservative reserving practices, which resulted in consistent favorable prior year loss reserve development in the past. AM Best continues to assess NCMIC’s balance sheet strength at the strongest level, supported by its risk-adjusted capitalization that is also at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR). The ratings also acknowledge the group’s dominant market position in the medical professional liability market for chiropractors.

This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best's Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.