Citing underwriting pressure and competitive conditions in the medical malpractice insurance market, financial ratings provider A.M. Best this week revised Glastonbury-based Connecticut Medical Insurance Group’s outlook from “stable” to “negative.”
At the same time, A.M. Best also reaffirmed as “excellent” Connecticut Medical Insurance Group’s ability to meet its current and future financial obligations.
“The negative outlooks reflect A.M. Best’s concerns with the emergence of adverse loss reserve development and its impact on operating performance, as well as the challenges that the group faces to improve results given ongoing competitive market conditions in the [medical professional liability] segment,” A.M. Best analysts wrote.
CMIG, founded by physicians in 1984, includes Connecticut Medical Insurance Co. and Washington, D.C.-based CMIC Risk Retention Group. CMIG recently named a new CEO, former Chief Operating Officer Stephen Gallant.
CMIG saw its operating income and net income both dip into negative territory in 2017 for the first time in at least five years, according to A.M. Best’s report.
The company had a net loss of $6.9 million last year, compared with a profit of $3.3 million in 2016.
Its direct written premiums dipped to $35.2 million from $40 million the year prior. In Connecticut, CMIG’s second largest geographic market, written premiums fell from $20.1 million to $12.3 million , while its business in Massachusetts — where the largest portion of its policies are written — grew by more than $3.5 million, A.M. Best said.
