As reported by Politico New York on March 7, 2017, one of the state’s major malpractice insurance carriers has both a negative surplus and declining revenues. In its article – “Revenue drops and losses grow for state’s second-largest malpractice carrier” – Politico indicates that the carrier’s premium revenue has declined 24 percent in two years and that for 2016 “its liabilities exceed its assets by $354 million, up from $138 million in 2015 and $83 million in 2014.”
We believe that insurer financials matter to policyholders and want to reassure MLMIC insureds: although uncertainty in the marketplace can cause some anxiety, MLMIC coverage is not at risk. In fact, MLMIC’s financial condition is sound, and the Company is able, once again, to offer a policyholder dividend (20% for those insured by May 1 and continuously insured through July 1).
We’ll keep monitoring the situation in the market on your behalf and will apprise you of further developments. In the meantime, if you have questions, please call 1 (888) 488-9253.