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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) of A- (Excellent) and an issuer credit rating (ICR) 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 reinsurance agreement (retroactive 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 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 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, an overview of the rating process and rating methodologies, please visit

Founded in 1899, A.M. Best Company is a full-service credit rating organization dedicated to serving the financial services industries, including the banking and insurance sectors. For more information, visit
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Publication:Business Wire
Date:Jul 2, 2007
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