AM Best has upgraded the Long-Term Issuer Credit Rating (Long-Term ICR) to “a+” (Excellent) from “a” (Excellent) and affirmed the Financial Strength Rating (FSR) of A (Excellent) of Hospitals Insurance Company, Inc. (HIC) (New York, NY). Concurrently, AM Best has affirmed the FSR of A (Excellent) and the Long-Term ICR of “a+” (Excellent) of The Doctors Company, An Interinsurance Exchange (Napa, CA) and its core subsidiaries (See below for a list of TDC’s companies.) The outlook of these Credit Ratings (ratings) is stable. Collectively these companies comprise the Doctors Company Insurance Group (TDC or TDC Group).

The 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 Long-Term ICR upgrade for HIC reflect the extension of TDC Group’s ratings due to the company being fully integrated into the group’s operations since being acquired in 2019. In recent years, HIC has been successful at retaining its core clientele, which consists of some of the nation’s largest healthcare systems, as well as expanding to new members across New York’s admitted hospital professional liability (HPL) insurance market. The company is viewed as one of TDC’s strategic business units and has demonstrated a track record of supporting the group’s strategy. In addition, HIC provides a material contribution to TDC’s premiums and earnings. Furthermore, TDC has indicated its willingness to provide explicit support to HIC if needed.

TDC Group’s balance sheet strength continues to be supported by the strongest level of risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR). In addition, the group benefits from consistently favorable loss reserve development and a solid liquidity position. The group’s underwriting and overall operating performance continues to improve as a result of rate actions and the benefits of the increased interest rate environment on net investment income. TDC maintains a strong market position as the second largest medical professional liability writer in the United States, based on 2023 direct premiums written. Further, an appropriate ERM program is in place with a well-defined framework and risk management capabilities that are closely aligned with the group’s risk profile.

The FSR of A (Excellent) and the Long-Term ICRs of “a+” (Excellent) have been affirmed 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

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.

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