OLDWICK, N.J.–(BUSINESS WIRE)–AM Best has placed under review with negative implications the
Financial Strength Rating of A- (Excellent) and the Long-Term Issuer
Credit Ratings of “a-” of Connecticut Medical Insurance Company
(Glastonbury, CT) and its sponsored risk retention group company, CMIC
Risk Retention Group (District of Columbia). These companies are
referred to collectively as CMIC Group (the group).
The under review status considers several strategic initiatives that
management plans to execute during the third quarter of 2019 and the
benefits these are expected to have on the group’s prospective operating
results. These initiatives, combined with corrective underwriting
actions introduced by management in the prior year, are expected to
improve the group’s operating performance, which has suffered in recent
years due to increased claims severity, diminishing reserve
redundancies, and a declining premium base. AM Best views these
initiatives being taken in the upcoming quarter as material and
therefore, failure to execute on these plans is likely to result in
negative ratings pressure, hence the negative rating implications. The
ratings will remain under review pending further discussions with
management and, more importantly, the execution of these new initiatives.
This press release relates to Credit Ratings that have been published
on AM Best’s website. For all rating information relating to the release
and pertinent disclosures, including details of the office responsible
for issuing each of the individual ratings referenced in this release,
please see AM Best’s Recent
Rating Activity web page. For additional information
regarding the use and limitations of Credit Rating opinions, please view Understanding
Best’s Credit Ratings. For information on the proper media
use of Best’s Credit Ratings and AM Best press releases, please view Guide
for Media – Proper Use of Best’s Credit Ratings and AM Best Rating
Action Press Releases.
AM Best is a global rating agency and information provider with a
unique focus on the insurance industry. Visit www.ambest.com
for more information.
Copyright © 2019 by A.M. Best Rating Services, Inc. and/or its
affiliates. ALL RIGHTS RESERVED.
Contacts
Connor Brach, FR
Financial Analyst
+1 908 439
2200, ext. 5573
[email protected]
Christopher
Sharkey
Manager, Public Relations
+1 908 439
2200, ext. 5159
[email protected]
Sharon
Pereira Marks
Senior Financial Analyst
+1 908
439 2200, ext. 5477
[email protected]
Jim
Peavy
Director, Public Relations
+1 908 439
2200, ext. 5644
[email protected]
