Oldwick
11 August 2017
Reporter: Becky Butcher

The Doctors Company and captives given clean bill of health


A.M. Best has affirmed the financial strength rating of “A (Excellent)” and the long-term issuer credit rating of “a” of The Doctors Company, an inter-insurance exchange, and its wholly-owned subsidiary, TDC Speciality Insurance Company.

In addition, the rating agency has also affirmed the financial strength rating of “A (Excellent)” and the long-term issuer credit rating of “a” of TDC National Assurance Company.

TDC National is a captive reinsurer assuming liabilities from the exchange for death, disability and retirement coverages. All companies are wholly owned subsidiaries of the exchange.

The financial strength rating of American Physicians Assurance Corporation, The First Professionals Insurance Company and OHIC Insurance Company have also been affirmed as “A- (Excellent)”, with a long-term issuer credit of “a-”, but have since been withdrawn.

A.M. Best withdrew the ratings of American Physicians Assurance Corporation, The First Professionals Insurance Company and OHIC Insurance Company at the request of their management, due to the companies being in run-off.

The rating affirmations of the exchange and TDC Specialty reflect strong balance sheets, long-term operating performance and the exchange’s market position within the US medical professional liability (MPL) sector.

According to A.M. Best, this is the result of positive earnings, successful acquisitions, and strong patient safety and risk management programmes.

TDC Specialty’s ratings also benefit from the implicit and explicit support from the exchange, which includes “significant” inter-company reinsurance.

A.M. Best said: “All of the ongoing companies within the organisation face the challenges associated with being concentrated in MPL lines of business including very competitive soft market pricing; a declining physician market base; a modest trend of increasing claims severity; and declining reserve redundancies. In addition, investment returns have been diminished by the low interest rate environment.”

More news
The latest news from Captive Insurance Times
Join Our Newsletter

Sign up today and never
miss the latest news or an issue again

Subscribe now
UK’s ILS legislation to be in place for January renewals
17 October 2017 | London | Reporter: Jenna Lomax
Malcolm Newman, CEO of Scor’s London hub and sponsor of the London Market Group’s (LMG) ILS Taskforce is “cognisant of the time pressures if ILS applications are to be made in time for 1 January renewals”
Centaur Fund Services adds ILS head
16 October 2017 | Bermuda | Reporter: Becky Butcher
Centaur Fund Services has appointed IC Condat as its head of insurance linked-securities (ILS), based in the firm’s Bermuda office
Roundstone and HUB team up on captive programme
16 October 2017 | Ohio | Reporter: Becky Butcher
Roundstone Management and HUB International have partnered up to create self-funded medical captive programmes
Sun Life and Pareto launch stop-loss group captive
13 October 2017 | Massachusetts | Reporter: Becky Butcher
Sun Life and Pareto Captive Services have teamed up to establish a new stop-loss group captive solution, Legend Re
DARAG names new CEO of its Italian operation
13 October 2017 | Milan | Reporter: Becky Butcher
European run-off insurance company DARAG has appointed Tullio Ferrucci as CEO of DARAG Italia, following the acquisition of ERGO Assicurazioni
Cybercrime losses set to increase, says cyber risk expert
12 October 2017 | London | Reporter: Becky Butcher
Losses from cybercrime are only likely to increase because of far-reaching global connectivity, warned James Trainor, Aon’s senior vice president of cyber solutions
Axial Benefits Group complete captive deal
12 October 2017 | Massachusetts | Reporter: Becky Butcher
Axial Benefits Group has completed a medical stop-loss transaction with QBE North America to enhance its healthcare purchasing coalition operations