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, which it maintains in the medical professional liability (MPL) sector, proving the group's ability to underwrite profitably through 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 substantial historical returns on equity, low operating ratios and solid net 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 reinsurance programs, investment opportunities and capital support.

Partially offsetting these positive rating factors are the inherent challenges associated with the medical professional liability line of business, particularly as it relates to price competition, changing market dynamics, potential changes in legislation (i.e., tort reform), increasing loss cost trends and regulatory risk. At the same time, AM Best recognizes the organization's strong management team, diversified premium base and jurisdictional diversity, which have contributed to MedPro outperforming its peers over the longer term and maintaining a significant market position.

MedPro has historically 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 historically 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, as well as the investment managers' historical trend of success in turbulent markets. At year-end 2024, MedPro moved a significant portion of its invested assets into short-term investments and cash, as well as reduced its common stock exposure.

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, CPCU

Financial Analyst

+1 908 882 2237

christopher.pennings@ambest.com

Gregory Dickerson

Director

+1 908 882 2531

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

AM Best Affirms Credit Ratings of Members of MedPro Group