A.M. Best Upgrades Ratings of The Medical Protective Company

Business Wire, Dec 22, 2006

OLDWICK, N.J. -- A.M. Best Co. has upgraded the financial strength rating (FSR) to A (Superior) from A (Superior) and the issuer credit rating to "aa " from "aa-" of The Medical Protective Company (Medical Protective) (Fort Wayne, IN). The outlook for both ratings is stable.

These rating actions reflect both the implicit and explicit financial support provided by Medical Protective's ultimate parent, Berkshire Hathaway Inc. [NYSE: BRK.A and BRK.B] , its (re)insurance affiliates and the benefits derived from two significant reinsurance transactions, which include a loss portfolio transfer and quota share agreement between Medical Protective and its parent, Columbia Insurance Company (Columbia Insurance), and an affiliate, National Indemnity Company, which are indirect wholly-owned subsidiaries of Berkshire Hathaway (all of Omaha, NE). The transactions demonstrate in effect the commitment provided by Berkshire Hathaway, partially mitigating the risk of adverse loss reserve development and significantly improving Medical Protective's risk-adjusted capitalization that is supportive of its Superior rating.

The ratings also consider Medical Protective's leading market presence in the primary medical professional liability market, its distribution capabilities, aggressive claims philosophy and its comparatively strong operating performance. Additionally, the ratings acknowledge the change in reserve philosophy since Medical Protective was acquired by Berkshire Hathaway in June 2005.

For Best's Ratings, an overview of the rating process and rating methodologies, please visit www.ambest.com/ratings.> A.M. Best Co., established in 1899, is the world's oldest and most authoritative insurance rating and information source. For more information, visit A.M. Best's Web site at www.ambest.com.