S&P’s Affirms Rating for ALPS

Standard & Poor’s affirmed its single-‘A’-minus counterparty credit and financial strength ratings on Attorney’s Liability Protection Society Inc., Risk Retention Group (ALPS). The outlook is stable.

The ratings are based on the company’s extremely strong capitalization, excellent operating performance, and strong niche servicing small to medium-sized law practices.

ALPS’s historical loss ratio has averaged less than 60 percent. Given the competitive pressures within the industry, Standard & Poor’s expects ALPS’s loss ratio to increase marginally. However the company is still expected to make an underwriting profit. Standard & Poor’s expects an expense ratio of 32 percent in 2002, with the expense ratio dropping to 30 percent by 2003 as the company begins to benefit from the expense savings initiated by its paperless office system. Premium growth of 10 percent is expected as the company continues to expand selectively into other jurisdictions and write more business in EPLI and Judicial E&O.

In addition, capital adequacy – as measured by Standard & Poor’s capital adequacy ratio – is expected to remain extremely strong.