OLDWICK, N.J.--(BUSINESS WIRE)-- A.M. Best Co. has revised the outlook to positive from stable and affirmed the financial strength rating (FSR) of A- (Excellent) and issuer credit ratings (ICR) of "a-" of Doctors Company Insurance Group (TDC) (Napa, CA) and its members. (See below for a detailed listing of the companies.)

The ratings reflect TDC's strong operating performance, excellent risk-adjusted capitalization, improved reserve development, appropriate cycle management and leading position within the medical professional liability sector. A.M. Best also recognizes the group's geographic diversification, which has been supported by the successful integration of recent acquisition driven growth.

Partially offsetting these strengths are the challenges associated with the medical professional liability insurance sector as it relates to price competition, legislative (tort) reform, loss cost trends and regulatory challenges. An additional factor is the history of moderate fluctuations in TDC's earlier operating results, driven by adverse reserve development in prior accident years. However, reserve development since 2004 has been favorable, reflecting management's corrective actions and general market conditions.

In addition, A.M. Best has affirmed FSRs of B+ (Good) and ICRs of "bbb-" to SCPIE Indemnity Company (Los Angeles, CA), American Healthcare Specialty Insurance Company, (Little Rock, AK) and American Healthcare Indemnity Company (Wilmington, DE). The outlook for these ratings is stable.

These companies were acquired by TDC on June 30, 2008. Prior to January 1, 2009, these three entities were rated by A.M. Best under a pooled affiliation. Currently, the pooling agreement is no longer in place, and each of these companies is rated separately. Support for these ratings is provided by the companies' appropriate risk-adjusted capital positions.


Concurrent with this structural change, A.M. Best has withdrawn the FSR of B+ (Good) and ICRs of "bbb-" and assigned a category NR-5 to the FSR and an "nr" to the ICRs of the previously existing group, The SCPIE Companies.

The FSR of A- (Excellent) and ICRs of "a-" have been affirmed with a revised outlook to positive from stable for Doctors Company Insurance Group and its following members:

• Doctors Company Interinsurance Exchange
• Underwriter for the Professions
• Professional Underwriters Liability Company
• OHIC Insurance Company
• Northwest Physicians Insurance Company

For Best's Credit Ratings, an overview of the rating process and rating methodologies, please visit www.ambest.com/ratings.

The principal methodologies used in determining these ratings, including any additional methodologies and factors that may have been considered, can be found at www.ambest.com/ratings/methodology.

Founded in 1899, A.M. Best Company is a global full-service credit rating organization dedicated to serving the financial and health care service industries, including insurance companies, banks, hospitals and health care system providers. For more information, visit www.ambest.com.



A.M. Best Co.

Analysts

Robert Raber, 908-439-2200, ext. 5696

robert.raber@ambest.com

or

Henry Witmer, 908-439-2200, ext. 5097

henry.witmer@ambest.com

or

Public Relations

Jim Peavy, 908-439-2200, ext. 5644

james.peavy@ambest.com

or

Rachelle Morrow, 908-439-2200, ext. 5378

rachelle.morrow@ambest.com



Source: A.M. Best Co.