Early this year, KaMMCO decided to seek a rating from A. M. Best Company. A.M. Best is the most highly recognized rating company in the insurance industry.

We made the decision to seek a Best rating this year for several reasons which can be summarized in two categories.

First of all, our analysis indicated that we had achieved the strength and stability that would qualify us for a favorable rating. Additionally, we understand that increased strength and stability is good, but it also creates increased obligations and expectations. In our opinion, seeking a Best rating at this time was commensurate with the expectations of our members and those with whom we do business.

We submitted our information to Best in late March and early April, and on May 10 we received notice that KaMMCO had been granted a financial strength rating of A- (Excellent) and an issuer credit rating of “a-”. The outlook assigned to both ratings was stable. We were of course very pleased with this outcome.

To quote A.M. Best’s press release, “The ratings reflect KaMMCO’s strong risk-adjusted capital position, long-term and consistent record of favorable operating performance and its dominant market position as the leading writer of medical professional liability insurance (MPLI) in Kansas. These positive rating factors are primarily derived from the company’s long-term pricing and underwriting discipline, strong retained earnings and sound capital management. As a leading MPLI provider in Kansas, KaMMCO’s profitability also is a by-product of the state’s relatively conservative judicial and legislative climate, its favorable tort reform environment (including caps on non-economic damages) and the existence of the Health Care Stabilization Fund (HCSF). Distribution diversification and customer service also have played a role in allowing KaMMCO to grow its book in a profitable manner over an extended period of time. These positive rating factors are offset by the inherent market risks associated with being essentially a single state, monoline medical professional liability insurer, as it relates to price competition, regulatory and legislative challenges, including the pending Kansas Supreme Court hearing on the constitutionality of caps on non-economic damages.”

We view the achievement of this favorable rating by A.M. Best as another milestone in the growth and development of KaMMCO. Ultimately this, along with the many other successes we have enjoyed, is due to the support and loyalty of our members and the excellent health care that they provide.

David Ross, MD
President & Chairman of the Board
KaMMCO