AM Best has affirmed the Financial Strength Rating of A++ (Superior) and the Long-Term Issuer Credit Ratings of "aa+" (Superior) of the members of MedPro Group (MedPro). These Credit Ratings (ratings) apply to The Medical Protective Company (Fort Wayne, IN) and its affiliates: Princeton Insurance Company (Princeton, NJ); PLICO, Inc. (Oklahoma City, OK); Wellfleet Insurance Company (Fort Wayne, IN); and Wellfleet New York Insurance Company (New York, NY); as well as MedPro’s two reinsured affiliates, MedPro RRG Risk Retention Group and AttPro RRG Reciprocal Risk Retention Group (both domiciled in the District of Columbia). The outlook of these ratings is stable.

The ratings reflect MedPro’s balance sheet strength, which AM Best assesses as strongest, as well as its strong operating performance, favorable business profile and appropriate enterprise risk management.

The ratings acknowledge MedPro’s risk-adjusted capitalization being at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR), as well as the group’s long-term profitable operating performance and its leading market position in the medical professional liability (MPL) sector, which has been validated by the group’s ability to underwrite profitably through varying market cycles. Additionally, the ratings consider the organization’s substantial distribution capabilities, prudent claims-handling philosophy and culture of holistic risk management. MedPro consistently outperforms peers by most metrics, illustrated by solid historical returns on equity, strong operating ratios and consistent positive underwriting income. Furthermore, the ratings benefit from the explicit and implicit financial support provided by its affiliate, National Indemnity Company, and MedPro’s ultimate parent, Berkshire Hathaway Inc. (NYSE:BRK), which includes internal reinsurance support and investment management expertise.

Partially offsetting these positive rating factors are the inherent challenges associated with the MPL line of business. These include significant price competition, the erosion of tort reform laws in some jurisdictions, increasing loss cost trends and regulatory risk. Additionally, the market faces evolving dynamics, with consolidation of competitors and continued health care industry consolidation. MedPro historically has had a large allocation to common stocks, exposing it to significant volatility during periods when the equity markets experience sharp declines. The group has demonstrated its ability to absorb this volatility and maintain the strongest level of risk-adjusted capitalization, as measured by BCAR, due to its low underwriting leverage, driven by its affiliated reinsurance agreement with National Indemnity Company and MedPro’s substantial capital position. In the last two years, MedPro’s equity allocation has declined as the group moved more investments into cash and short-term investments, though still maintains a significant exposure to a more limited number of equities.

This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best's Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

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Christopher Pennings

Senior Financial Analyst

+1 908 882 2237

christopher.pennings@ambest.com

Gregory Dickerson

Director

+1 908 882 1737

gregory.dickerson@ambest.com

Christopher Sharkey

Associate Director, Public Relations

+1 908 882 2310

christopher.sharkey@ambest.com

Al Slavin

Senior Public Relations Specialist

+1 908 882 2318

al.slavin@ambest.com