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A.M. Best Affirms Credit Ratings of The Doctors Company, An Interinsurance Exchange and Its Subsidiaries; Withdraws Credit Ratings of Run-off Entities
[August 10, 2017]

A.M. Best Affirms Credit Ratings of The Doctors Company, An Interinsurance Exchange and Its Subsidiaries; Withdraws Credit Ratings of Run-off Entities

A.M. Best has affirmed the Financial Strength Rating (FSR) of A (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of "a" of The Doctors Company, An Interinsurance Exchange (The Exchange) (Napa, CA (News - Alert)) and its wholly owned subsidiary, TDC Specialty Insurance Company (TDC Specialty) (Washington, DC). In addition, A.M. Best has affirmed the FSR of A (Excellent) and the Long-Term ICR of "a" of TDC National Assurance Company (TDC National) (Lake Oswego, OR). The outlook of these Credit Ratings (ratings) is stable.

Furthermore, A.M. Best has affirmed the FSR of A- (Excellent) and the Long-Term ICR of "a-" of American Physicians Assurance Corporation (APAC) (East Lansing, MI), First Professionals Insurance Company (FPIC) (Jacksonville, FL) and OHIC Insurance Company (OHIC) (Columbus, OH). The outlook of these ratings is stable.

Concurrently, A.M. Best has withdrawn the ratings of APAC, FPIC and OHIC as management has requested to no longer have these companies, which are in run-off, participate in A.M. Best's interactive rating process.

All companies are wholly owned subsidiaries of The Exchange.

The rating affirmations of The Exchange and TDC Specialty are due primarily to strong balance sheets, long-term operating performance and The Exchange's leading market position within the U.S. medical professional liability (MPL) sector. This position is the result of positive earnings, successful acquisitions, and strong patient safety and risk management programs. TDC Specialty's ratings also benefit from the implicit and explicit support from the Exchange, which includes significant intercompany reinsurance.

TDC National's ratings reflect its supportive balance sheet strength, its specialty role within the organization and the implicit support of The Exchange. TDC National is a captive reinsurer assuming liabilities from The Exchange for death, disability and retirement coverages.

All of the ongoing companies within the organization face the challenges associated with being concentrated in MPL linesof 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.

The rating affirmations of APAC, FPIC and OHIC reflect strong balance sheets and run-off status, as all of their new and renewal business has been moved to The Exchange.

Positive rating action could result if key operating performance measures outpace those of the peer MPL composite as the group manages through the current competitive cycle within the MPL insurance market, while maintaining strong risk-adjusted capitalization.

Negative rating action could result from unfavorable trends in claim frequency or severity that materially impair underwriting profitability and lead to deteriorating operating trends or cause weakening in risk-adjusted capitalization.

A.M. Best remains the leading rating agency of alternative risk transfer entities, with more than 200 such vehicles rated in the United States and throughout the world. For current Best's Credit Ratings and independent data on the captive and alternative risk transfer insurance market, please visit

This press release relates to Credit Ratings that have been published on A.M. 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 A.M. Best's Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Understanding Best's Credit Ratings. For information on the proper media use of Best's Credit Ratings and A.M. Best press releases, please view Guide for Media - Proper Use of Best's Credit Ratings and A.M. Best Rating Action Press Releases.

A.M. Best is the world's oldest and most authoritative insurance rating and information source. For more information, visit

Copyright © 2017 by A.M. Best Rating Services, Inc. and/or its subsidiaries. ALL RIGHTS RESERVED.

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