ALDUICK, NJ March 28, 2024—(BUSINESS WIRE)–AM Best removed from evolving impact review and affirmed the Financial Strength Rating (FSR) of A (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICRs) of ‘a’ (Excellent) of certain members of Curi Insurance Group (Curi). Concurrently, AM Best removed from evolving review and downgraded the long-term ICRs to “a” (Excellent) from “a+” (Excellent) and affirmed the FSRs of A (Excellent) of North Carolina Medical Mutual and its wholly-owned subsidiary company, Medical Security Insurance Company. Both companies are headquartered in Raleigh, North Carolina and are also members of Curi. The outlook given to all these credit ratings (ratings) is stable. (Please see below for the list of Curi members and ratings.)
The ratings reflect the strength of Curi’s balance sheet, which AM Best rates as the strongest, as well as its adequate operating results, neutral business profile and appropriate enterprise risk management (ERM).
These ratings were previously revised with evolving implications in February 2023, following the announcement that Curi Holdings, Inc. and Constellation, Inc. (Constellation) have entered into a definitive merger agreement. Effective October 1, 2023, the merger was completed with the surviving entity being Curi Holdings, Inc. Following the merger, the members of the subsidiaries that made up Constellation Insurance Group and Curi Holdings Group are now viewed as a single AM-rated entity, Curi Insurance Group.
The assessment of the strength of the group’s balance sheet is supported by its risk-adjusted capitalization, which is at its strongest level as measured by Best’s Capital Adequacy Ratio (BCAR), which reflects the group’s moderate underwriting leverage, high capital quality, conservative investment portfolio and adequate loss reserve position. The balance sheet strength rating is further supported by adequate liquidity and a reinsurance program backed by highly rated participants to help protect the group’s surplus and earnings. In addition, there is some financial flexibility as group members are members of both the Des Moines and Atlanta Federal Home Loan Banks. The ultimate parent, Curi Holdings, Inc., has a neutral rating impact on the consolidated insurance company ratings with over $2 billion in consolidated assets and generating nearly $400 million in revenue serving more than 50,000 physicians, healthcare providers and organizations worldwide world United States by the end of 2023
The operating performance of the group remains in line with the composition of the group of comparable companies. Despite some deterioration in underwriting results in recent years, results remain profitable, underpinned by investment income contributing significantly to earnings. Consolidated underwriting results lagged the industry composition in recent years due to several large problem accounts and unfavorable reserve development, which was impacted in part by delayed claims settlement for the COVID-19 period. The non-renewal of distressed accounts and the re-underwriting of higher risks, as well as price adjustments and synergies expected in 2024, are expected to lead to improved underwriting results. AM Best expects the group’s future operating results to benefit from increased scale and geographic diversification following the merger. The ratings are also supported by the group’s adequate ERM, as management and oversight are unified across all insurance operations for the combined entity.
The stable outlook reflects AM Best’s expectation that the ongoing strategic initiatives implemented by management will lead to stable operating results over the medium term, while the group maintains the strongest assessment of balance sheet strength and risk-adjusted capitalization.
The FSR of A (Excellent) and Long-Term ICR of ‘a’ (Excellent) have been removed from the Evolving Implications Review and affirmed with a stable outlook assigned to the following Curi Insurance Group members:
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UMIA Insurance, Inc.
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MMIC Insurance, Inc.
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Arkansas Mutual Insurance Company
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MMIC Risk Retention Group, Inc.
Long-term ICRs were downgraded to ‘a’ (excellent) from ‘a+’ (excellent) and FSRs of A (excellent) were affirmed and removed from evolving implications review with a stable outlook set for the following Curi Insurance Group members:
This press release refers to the credit ratings that are published on the AM Best website. For all rating information relating to the release and relevant disclosures, including details of the agency responsible for issuing each of the individual ratings set out in this release, please see AM Best’s Recent assessment activity Web page. For additional information on the use and limitations of credit score opinions, please see Guide to Best Credit Ratings. For information on the proper use of Best’s credit ratings, Best’s performance ratings, Best’s preliminary credit ratings, and AM Best’s press releases, see A guide to the proper use of Best’s ratings and reviews.
AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company operates in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information visit www.ambest.com.
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