A.M. Best Affirms Ratings of The Medical Protective Company

A.M. Best Co. has affirmed the financial strength rating of A++ (Superior) and issuer credit rating of “aa+” of The Medical Protective Company (Medical Protective) (Fort Wayne, IN). The outlook for both ratings is stable.

These ratings reflect Medical Protective’s excellent capital strength position, favorable operating performance and the strong market position it maintains in the medical professional liability market. The ratings also consider the company’s substantial distribution capabilities, aggressive claims philosophy and the more conservative reserve position it has taken in recent years. Furthermore, the ratings continue to benefit from both the implicit and explicit financial support provided by Medical Protective’s ultimate parent, Berkshire Hathaway, Inc. (Omaha, NE) (NYSE: BRK-A), which purchased the company on June 30, 2005.

Following the transaction, Medical Protective entered into two reinsurance agreements with indirect, wholly owned subsidiaries of Berkshire Hathaway, Inc. These agreements include a 50% loss portfolio transfer of existing reserves as of December 31, 2005 and a 50% quota share agreement on business transacted on or after January 1, 2006.

Partially offsetting these positive rating factors are the inherent challenges associated with being a monoline medical professional liability insurer, particularly as it relates to price competition, legislative (tort) reform, loss cost trends and regulatory challenges.

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

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.