A.M. Best Upgrades PPM's Credit and Financial Strength Ratings
Both ratings have been revised to positive from stable.

Shawnee   Mission, KS - December 22, 2009 - Preferred Physicians Medical (PPM), industry leading provider of professional liability insurance for anesthesia practices announced today that A.M. Best Co. recently revised PPM's credit and financial strength ratings.

A.M. Best Co. upgraded the issuer credit rating to "bbb+" from "bbb" and affirmed the financial strength rating of B++ (Good) of PPM.  The outlook for both ratings has been revised to positive from stable.

According to A.M. Best, the ratings reflect PPM's strong risk-adjusted capitalization and sound operating performance.  The improvement in capitalization is primarily due to establishing conservative loss reserves, which have ultimately flowed into earnings.  Recent underwriting gains have been driven by its focused underwriting strategy, extensive risk management program, geographic diversification and the significant reduction in claims frequency since 2004, resulting in redundant loss reserves.

The ratings further recognize the financial flexibility afforded by PPM's parent, PPM Services, Inc., as proceeds from required capital contributions by policyholders may be contributed to the company.  This financial flexibility is somewhat tempered by the parent's share repayment obligations to insureds no longer participating in the program.  However, management has enhanced a capital management plan to reduce the impact from this issue.

PPM has benefited from its extensive knowledge and focus on the specialized field of anesthesiology, adherence to strict underwriting guidelines and geographic diversity enabling the company to reduce its exposure in more problematic jurisdictions.

The outlook contemplates the sustainability of excellent risk-adjusted capitalization, the successful execution of the capital management goals, the adherence to adequate pricing and reserving discipline, and controlled growth.

"A.M. Best's improved ratings reflect PPM's strong financial performance over the years," according to Steve Sanford, President & COO. "We are pleased that Best continues to recognize our efforts to remain a secure and stable source of medical professional liability insurance for anesthesiologists and their practices," added Sanford.

For Best's Credit Ratings, an overview of the rating process and the rating methodologies, please visit www.ambest.com/ratings.

The principal methodologies used in determining these ratings, including any additional methodologies and factors that may have been considered, can be found at www.ambest.com/ratings/methodology.