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A.M. Best Upgrades Company’s Outlook
Independent rating agency, A.M. Best, recently announced that
Medical Mutual Insurance Company of Maine's Financial
Strength Rating shall remain at B++, while its Outlook has
been upgraded from Stable to Positive. Given the Company's
strong financial performance for the past several years, Medical
Mutual President and CEO, Terrance J. Sheehan, MD, said in
an email to Company employees that he was disappointed, but
not surprised.
Having experienced four extremely strong years of financial
performance since the rating agency downgraded Medical
Mutual to B++ from its A- rating, Sheehan and senior management
of the Company had been holding out hope that this
would be the year that the Company's strong financial performance,
including dividend declarations totaling nearly $8 million
over the past two years, would be recognized with a Financial
Strength Rating upgrade. But just as Medical Mutual takes a
conservative approach to fiscal management, it appears that
A.M. Best is taking a similarly conservative approach to its rating,
said Sheehan.
He added, "We have had remarkable success over the past
four years and how we manage our company going forward
will determine our future, not A.M. Best's opinion. Interviewed
after Best's formal announcement", Sheehan said that
the first six months of 2009 further validate the Company's
approach as its financial performance continues to be
extremely strong by any measure.