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


OLDWICK, New Jersey – (COMMERCIAL THREAD) –AM Best revised the outlook to stable from positive for the long-term issuer credit rating (long-term ICR) and confirmed the financial strength rating (FSR) of A (excellent) and the long-term ICR of ” a ”(excellent) from Lawyers Mutual Liability Insurance Company of North Carolina (LML) (Cary, NC). The outlook for the FSR is stable.

These credit ratings (ratings) reflect the strength of LML’s balance sheet, which AM Best considers to be the strongest, as well as its adequate operational performance, neutral business profile and appropriate management of corporate risks.

The revision of the outlook to stable for the long-term ICR is based on the volatility of LML’s operating results published in recent years, due to an unfavorable evolution of reserves over the previous accident years. This unfavorable development is due to an increase in the frequency and severity of claims, after years of declining trend. While LML has reported favorable overall operating profitability over the previous five years, the most recent results are more closely aligned with the current adequate assessment of operating performance, resulting in a shift in outlook stable to positive.

The ratings also recognize LML’s highest level of risk-adjusted capitalization, as measured by Best’s capital adequacy ratio (BCAR), strong liquidity, a prudent investment portfolio and a comprehensive reinsurance program. which protects policyholders’ surplus against earnings volatility. LML has long-standing expertise in the legal professional liability industry in North Carolina; however, geographic and product concentration subjects it to a higher degree of risk due to fluctuations in the underwriting cycle, state economic conditions and changes in regulatory, legislative and judicial environments as well as competition.

This press release relates to credit ratings published on the AM Best website. For all rating information relating to the publication and relevant disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this publication, please see AM Best’s Recent Rating Activity webpage. . For more information on the use and limitations of credit rating reviews, please see Best’s Guide to Credit Ratings. For more information on the proper use of Best Credit Ratings, Best Preliminary Credit Ratings, and AM Best press releases, please see the Guide to Appropriate Use of Best Ratings and Reviews.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Based in the United States, the company operates in more than 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit

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