Demotech has affirmed the Financial Stability Rating (FSR) of A, Exceptional, previously assigned to Premier Physicians Insurance Company, a Risk Retention Group (RRG).
This level of FSR is assigned to insurers who possess exceptional financial stability related to maintaining positive surplus as regards policyholders, liquidity of invested assets, an acceptable level of financial leverage, reasonable loss and loss adjustment expense reserves and realistic pricing.
Demotech uses FSRs to summarise the financial stability of an insurer regardless of general economic conditions or the phase of the underwriting cycle.
FSRs utilise statutory financial data based on insurance accounting principles prescribed or permitted by the National Association of Insurance Commissioners (NAIC).
Since 1989, FSRs of A or better have been accepted by the major participants in the secondary mortgage marketplace.
The RRG was formed in 2006 as a physician owned and controlled alternative for physicians.
