NCRIC Group Attains ‘A-‘ A.M. Best Rating

July 10, 2003

NCRIC Group, Inc., a provider of medical professional liability insurance and physician practice management services in the Mid-Atlantic region, reported that A.M. Best Company has affirmed its financial rating of A- (Excellent). The rating applies to NCRIC Group’s insurance subsidiaries, NCRIC, Inc. and Commonwealth Medical Liability Insurance Company.

According to A.M. Best, the rating reflects NCRIC Group’s excellent level of capitalization, favorable operating profitability, and leadership position in providing medical professional liability insurance to individual and groups of physicians throughout the Mid-Atlantic region.

The rating also recognizes NCRIC Group’s response to marketplace changes by reorganizing to be able to better respond to the changing needs of physicians and to hardening market conditions. The rating further acknowledges the completion by NCRIC Group of its second step conversion to a full public corporation from a mutual holding company structure and the investment of 75 percent of the net proceeds into the insurance companies, which will provide capital to support future growth initiatives, increased risk retention levels and enhance operating profitability.

The rating reflects offsetting factors, which include the rise in claims severity as well as the increasing costs of defending claims, and the substantial growth in exposures.

However, the rationale comments favorably on management’s response to adverse loss cost trends through the implementation of premium rate increases and reduced schedule credits while aggressively managing claims.