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A.M. Best Assigns Ratings to OHIC Insurance Company and Affirms and Assigns Ratings to The Doctors Company Insurance Group.



OLDWICK, N.J. -- A.M. Best Co. has assigned a financial strength rating (FSR (Free System Resource) In Windows 3.x, the amount of unused memory in various 64K blocks reserved for managing current applications. Every open window takes some space in this area. See Windows memory limitation. ) of A- (Excellent) and an issuer credit rating (ICR (Intelligent Character Recognition or Image Character Recognition) The machine recognition of hand-printed characters as well as machine printing that is difficult to recognize. ) of "a-" to OHIC Insurance Company (OHIC) (Columbus, OH). A.M. Best has also affirmed the FSR of A- (Excellent) and assigned ICRs of "a-" to The Doctors Company Insurance Group (TDCG) (Napa, CA) and its members, which is led by The Doctors Company, An Interinsurance Exchange (The Doctors Company) (California). The outlook for all ratings is stable. (See below for a detailed list of the companies and ratings.)

The OHIC ratings reflect its acquisition, management oversight and support provided by The Doctors Company and the implementation of an inter-company quota share For This article is about quota shares (shares of the quota). For other usages of quota, see, see .

A quota share is a specified number or percentage of the allotment as a whole (quota), that is prescribed to each individual entity (see Non-tariff barriers to trade).
 reinsurance The contract made between an insurance company and a third party to protect the insurance company from losses. The contract provides for the third party to pay for the loss sustained by the insurance company when the company makes a payment on the original contract.  agreement (retroactive Having reference to things that happened in the past, prior to the occurrence of the act in question.

A retroactive or retrospective law is one that takes away or impairs vested rights acquired under existing laws, creates new obligations, imposes new duties, or attaches a
 to January 1, 2007) whereby OHIC cedes 90% of its net retained liability, after non-affiliated reinsurance, to The Doctors Company.

The ratings of TDCG follow the rating upgrades of the group on July 6, 2006 and take into consideration TDCG's continued profitability, strong overall capitalization, prudent underwriting discipline and the benefits garnered from a much improved market segment. Additionally, the ratings reflect and consider TDCG's strong capitalization, its robust reserve base and exceptional cash flows. The ratings also recognize all of the actions taken by management over the past several years to realign re·a·lign  
tr.v. re·a·ligned, re·a·lign·ing, re·a·ligns
1. To put back into proper order or alignment.

2. To make new groupings of or working arrangements between.
 the organization back to its core business and operational strategies. Equally important, the ratings acknowledge the benefits gained from these efforts when evaluated on an accident year basis.

These positive rating factors are offset by the significant earnings volatility that TDCG formerly experienced, the adverse loss reserve development reported in prior years and by the inherent market risks associated with the medical professional liability insurance sector as they relate to price competition, legislative (tort) reform, loss cost trends and regulatory challenges.

Despite increased competition, A.M. Best views TDCG's near-term earnings prospects and capital formation as favorable. The rating outlook is contingent upon Adj. 1. contingent upon - determined by conditions or circumstances that follow; "arms sales contingent on the approval of congress"
contingent on, dependant on, dependant upon, dependent on, dependent upon, depending on, contingent
 TDCG's cycle management capabilities and pricing and underwriting discipline.

The group ratings acknowledge the significant reinsurance protection provided by The Doctors Company, the subsidiaries' role within the group and any implicit and explicit financial support to be provided by The Doctors Company in the future.

The FSR of A- (Excellent) has been affirmed and ICRs of "a-" have been assigned to Doctors Company Insurance Group and its following members:

* Professional Underwriters Liability Insurance Company

* Underwriter for the Professions Insurance Company

* The Doctors Company, An Interinsurance Exchange

* Northwest Physicians Insurance Company

For Best's Ratings Best's rating

A rating A.M. Best Co. assigns to insurance companies based on the company's ability to meet its obligations to its policyholders.
, an overview of the rating process and rating methodologies, please visit www.ambest.com/ratings.

Founded in 1899, A.M. Best Company is a full-service credit rating organization dedicated to serving the financial services The examples and perspective in this article or section may not represent a worldwide view of the subject.
Please [ improve this article] or discuss the issue on the talk page.
 industries, including the banking and insurance sectors. For more information, visit www.ambest.com.
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Publication:Business Wire
Date:Jul 2, 2007
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