This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

A.M. Best Revises Outlook To Negative For Minnesota Lawyers Mutual Insurance Company

A.M. Best Co. has revised the outlook to negative from stable and affirmed the financial strength rating of A- (Excellent) and issuer credit rating of “a-” of Minnesota Lawyers Mutual Insurance Company (MLM) (Minneapolis, MN).

The ratings are reflective of MLM’s excellent capitalization, overall favorable operating performance and good geographic spread of risk. MLM’s positive rating factors are derived from its focus and commitment to the members of the legal profession, which has led to its high policyholder retention levels. The company also benefits from its excellent service, knowledge of the legal environment, longevity in the market and the payment of dividends to members during profitable periods. Although MLM continues to experience price competition and has exited various states in recent years, MLM has generally maintained earned premium levels while conservatively growing its insured base.

These positive rating factors are partially offset by MLM’s product concentration, the exhibited volatility in its results over the last several years, the deterioration in its underwriting and operating performance and the execution risk associated with the company’s underwriting initiatives put in place in recent years to return to profitability. While MLM’s underwriting performance had consistently outperformed the commercial casualty industry composite and the company’s lawyer professional liability peers through 2006, results began to decline in the latter part of 2007. Higher claim frequencies, increased claim severities and adverse prior year loss reserve development all contributed to this deterioration.

Management has implemented a number of initiatives designed to combat this trend and favorably influence MLM’s financial performance over the near term. The company has initiated base rate increases and real estate area of practice surcharges, reduced high hazard practices and improved systems. It also exited certain geographic locations where performance had not met the company’s expectations. In 2011, further actions included an interim rate plan to boost premium adequacy and the implementation of a new rating model focused more on the higher risk areas of practice.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $95.42 1.90%
FB $117.88 -0.58%
GOOG $695.72 -0.36%
TSLA $236.82 -2.10%
YHOO $36.15 -1.00%


Chart of I:DJI
DOW 17,770.49 -120.67 -0.67%
S&P 500 2,063.10 -18.33 -0.88%
NASDAQ 4,772.3240 -45.27 -0.94%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs