Best Affirms Lawyers’ Professional Indemnity ‘A’ (Excellent) Rating

A.M. Best Co. announced that it has affirmed the financial strength rating of A (Excellent) of Canada’s Lawyers’ Professional Indemnity Company (LAWPRO®). “The rating reflects LAWPRO®’s profitable operating performance, strong capital position, effective management team, continued favorable loss reserve development, surplus support from its parent and overall financial strength,” said Best.

The rating agency explained that “LAWPRO® is wholly owned by the Law Society of Upper Canada, the governing body of Ontario lawyers.” It specializes in providing lawyer’s professional liability coverage on a claims-made basis in Ontario, Newfoundland and Labrador along with title insurance products.

“The company’s risk-based underwriting model has resulted in consistent profitable underwriting results,” said the bulletin. The good results have combined with investment income, and have “contributed to the sustained internal growth of LAWPRO®’s capital and financial strength.”

Best also noted that “In addition to managing claims, LAWPRO® continues to focus on risk management and member education through its practicePRO risk management and practice management program.”

“Partially offsetting these positive rating factors is the increased exposure stemming from LAWPRO®’s strategic decision to forgo quota-share reinsurance coverage on its main Ontario program in 2003,” Best continued.

It concluded, however, that it believes “the company’s disciplined management, strengthened capital position and stop-loss arrangement, ensure it is able to assume 100% of the Ontario program without compromising its financial strength.”