AM Best has revised the outlooks to positive from stable and affirmed the Financial Strength Rating (FSR) of A (Excellent) and the Long-Term Issuer Credit Rating (Long-Term ICR) of “a+” (Excellent) of The Doctors Company, An Interinsurance Exchange (Napa, CA) and its core subsidiaries, which collectively comprise The Doctors Company Insurance Group (TDC or TDC Group). See below for a list of companies.

The Credit Ratings (ratings) of TDC reflect the group’s balance sheet strength, which AM Best assesses as strongest, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management (ERM).

The positive outlooks reflect the strength of the group’s business profile as one of the leaders in the medical professional liability (MPL) segment, as highlighted by the favorable trend in its operating and underwriting results in recent years. Strong underwriting results in recent years have been driven by rate increases, excellent policyholder retention and the group’s conservative reserving practices, resulting in significant amounts of favorable prior year loss reserve development. In addition, overall operating results have benefited from increased net investment income amid the ongoing higher interest rate environment.

The outlooks also reflect AM Best’s expectation that TDC Group will maintain its overall balance sheet strength assessment at the strongest level, supported by risk-adjusted capitalization also at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR), good quality of capital, sound liquidity, prudent loss reserve position and its balanced investment portfolio.

The pending acquisition of ProAssurance Corporation, the fourth-largest writer of MPL in the United States as of year-end 2024, is expected to further solidify TDC’s strong market position. The transaction is expected to close in the first half of 2026, subject to customary closing conditions and receipt of regulatory approvals. While the transaction is expected to have a modest negative impact on TDC Group’s underwriting results in the short term, AM Best notes that TDC Group has a favorable track record of successfully acquiring and integrating prior acquisitions. This acquisition also will increase TDC’s scale and market share, as well as improve geographic and product diversification.

Positive rating action may occur through persistent market leadership and strong business trends that result in a sustained period of underwriting and overall operating performance that outperforms peers and the broader property/casualty industry. Negative rating action could result from adverse reserve development or unfavorable trends in claims frequency or severity that materially impair underwriting profitability and lead to deteriorating operating trends or cause weakening in risk-adjusted capitalization.

The FSR of A (Excellent) and the Long-Term ICRs of “a+” (Excellent) have been affirmed with the outlooks revised to positive from stable for the following members of The Doctors Company Insurance Group:

• The Doctors Company, An Interinsurance Exchange
• TDC National Assurance Company
• TDC Specialty Insurance Company
• TDC Special Risks Insurance Company
• The Doctors Company Risk Retention Group, a Reciprocal Exchange
• Hospitals Insurance Company, Inc.

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 Guide to Best's Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

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