Standard & Poor’s Ratings Services announced that it has lowered its counterparty credit and financial strength ratings on Connecticut Medical Insurance Co. to “Bpi” from “BBBpi”.
“Key rating factors include the company’s weak profitability and high geographic and product line concentration, which are partially offset by its extremely strong capitalization,” observed S&P credit analyst Tom Taillon.
S&P’s announcement noted that the company is headquartered in Glastonbury, Conn., and writes medical malpractice insurance for physicians, dentists, and other medical care providers. It began operations in 1984 and is licensed exclusively in Connecticut.
S&P rates Connecticut Medical on “a stand-alone basis.” It also stressed that the “pi” subscript indicates that the rating is “based on an analysis of an insurer’s published financial information and additional information in the public domain,” and doesn’t “reflect in-depth meetings with an insurer’s management and are therefore based on less comprehensive information than ratings without a ‘pi’ subscript.”
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