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AM Best Revises Issuer Credit Rating Outlook to Stable for Lawyers Mutual Liability Insurance Company of North Carolina.

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ENPNewswire-September 23, 2021--AM Best Revises Issuer Credit Rating Outlook to Stable for Lawyers Mutual Liability Insurance Company of North Carolina

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Release date- 21092021 - AM Best has revised the outlook to stable from positive for the Long-Term Issuer Credit Rating (Long-Term ICR) and affirmed the Financial Strength Rating (FSR) of A (Excellent) and the Long-Term ICR of 'a' (Excellent) of Lawyers Mutual Liability Insurance Company of North Carolina (LML) (Cary, NC).

The outlook of the FSR is stable.

These Credit Ratings (ratings) reflect LML's balance sheet strength, which AM Best assesses as strongest, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management.

The revision of the outlook to stable for the Long-Term ICR is based on volatility in LML's operating results reported in recent years, driven by adverse reserve development on prior accident years. The adverse development was due to an increase in claim frequency and severity, after years of a decreasing trend. While LML has reported favorable overall operating profitability over the previous five-year period, the more recent results are more closely aligned with the current adequate operating performance assessment resulting in a change in the outlook to stable from positive.

The ratings also recognize LML's strongest level of risk-adjusted capitalization, as measured by Best's Capital Adequacy Ratio (BCAR), strong liquidity, conservative investment portfolio and comprehensive reinsurance program that protects policyholder surplus from volatility in results. LML has long-standing expertise in the North Carolina legal professional...

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