A.M. Best Downgrades Rating of Pharmacists Mutual; Revises Outlook to Stable.OLDWICK, N.J. -- A.M. Best Co. has downgraded the financial strength rating to A (Excellent) from A+ (Superior) of Pharmacists This is a list of notable pharmacists.
The rating downgrade Downgrade A negative change in the rating of a security. Notes: For example, an analyst may downgrade a stock from strong buy to buy, or a bond rating agency may downgrade a bond from AAA to AA. of Pharmacists Mutual primarily reflects its substantial adverse loss reserve development reported in recent years, below average operating returns and variability in underwriting Underwriting 1. The process by which investment bankers raise investment capital from investors on behalf of corporations and governments that are issuing securities (both equity and debt). 2. The process of issuing insurance policies. and operating results. Conversely con·verse 1 intr.v. con·versed, con·vers·ing, con·vers·es 1. To engage in a spoken exchange of thoughts, ideas, or feelings; talk. See Synonyms at speak. 2. , Pharmacists Mutual should benefit from several actions taken by management in 2004 related to the reorganization of the company's claims operations, which could ultimately lead to more adequate loss reserves going forward. Despite the rating downgrade, Pharmacists Mutual maintains a strong level of risk-adjusted capitalization and is recognized for its historically favorable underwriting results, effective and efficient direct marketing strategy, expense containment and leadership position as the largest independent insurer of pharmacists in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. . Much of the adverse loss reserve development reported in recent years has largely occurred within its commercial multi-peril, workers' compensation workers' compensation, payment by employers for some part of the cost of injuries, or in some cases of occupational diseases, received by employees in the course of their work. and personal auto liability lines. Underwriting results also have been adversely affected by Pharmacists Mutual's expansion in its home health care target market, which has produced loss ratios much higher than its home medical equipment and core pharmacy markets. The company's weaker than historical loss experience has also led to higher 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. costs and the need to pursue more adequate premium rates. Furthermore, in 2003, Pharmacists Mutual settled a highly-publicized, class action lawsuit class action lawsuit A lawsuit in which one party or a limited number of parties sue on behalf of a larger group to which the parties belong. For example, investors may bring a class action lawsuit against a brokerage firm that has actively promoted a tax (the Courtney case) involving an insured who intentionally diluted various compounded drugs over a number of years. Due to the unusual nature of this lawsuit, the settlement amount of $6 million (net of reinsurance) was accounted for as a write-in item and was not included in underwriting results reported in 2003. The rating affirmation of Pharmacists Life reflects its more than adequate risk-adjusted capitalization and its important life insurance focus within the parent organization--Pharmacists Mutual Companies. 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 http://www.ambest.com/ratings. For current Best's Ratings, independent data and analysis on more than 3,000 individual property/casualty companies and A.M. Best groups, please visit http://www.ambest.com/pc. A.M. Best Co., established in 1899, is the world's oldest and most authoritative insurance rating and information source. For more information, visit A.M. Best's Web site at http://www.ambest.com. |
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