API gets strong rating from A.M. Best Co.
Austin Business Journal
American Physicians Service Group, an Austin-based medical professional liability insurance provider, has received a financial strength rating of A- for its subsidiary American Physicians Insurance Company from A.M. Best Co.
A.M. Best cited API’s strengthened risk-adjustment capital position and strong policyholder retention, APS says. A strong financial rating usually makes companies more attractive to investors.
“We are obviously pleased with our strong initial rating from A.M. Best,” says Ken Shifrin, chairman of APS (NASDAQ: AMPH). “While API had grown as an unrated carrier to be the third largest medical malpractice insurer in Texas by offering the excellent service reflected in its ‘doctors serving doctors’ motto, we believe that this rating will enhance both geographic expansion opportunities and opportunities with those Texas medical groups who purchase only from rated carriers.”
APS acquired API in April, and in June raised $36 million in a follow-on stock offering and contributed $10 million to the capital of API, says APS President Tim LaFrey. The company also expanded into Oklahoma in August, offering professional liability insurance.