AM Best has revised the outlooks to stable from negative and affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of “a-” (Excellent) of ISMIE Mutual Å˽ðÁ«´«Ã½Ó³» Company and ISMIE Indemnity Company (collectively known as ISMIE or the group). Both companies are domiciled in Chicago, Illinois.
The Credit Ratings (ratings) reflect ISMIE’s balance sheet strength, which AM Best assesses as strongest, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management.
The revision of the outlooks to stable reflects steady improvement in ISMIE’s operating performance driven by rate and underwriting actions as well as expense management, as it has executed on various strategic initiatives to return to profitability. Net investment income was a significant contributor to operating earnings driven by higher yields after a period of constraint in prior years from the group’s conservative investment portfolio.
The group’s expansion strategy into new territories and product offerings over the most recent five-year period, combined with modest expansion within its core medical professional liability book, resulted in another year of premium growth in 2024. Due to ISMIE’s conservative capital management and prudent reserving, risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), and overall balance sheet strength each remain at the strongest level, absorbing underwriting and overall economic volatility, as well as execution risks associated with the group’s business plan.
Source: AM Best
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