Best Affirms Lawyers’ Professional Indemnity ‘A’ Rating

A.M. Best Co. announced that it has affirmed the financial strength rating of “A” (Excellent) of Toronto-based Lawyers’ Professional Indemnity Company (LAWPRO), which is wholly-owned by the Law Society of Upper Canada, the governing body of Ontario lawyers. The rating outlook is stable.

“The rating reflects LAWPRO’s strong operating performance, excellent capitalization, and its historically favorable loss reserve development,” said Best. “The company specializes in underwriting lawyers’ professional liability coverage on a claims made basis in Ontario, Newfoundland and Labrador, along with title insurance products in numerous jurisdictions across Canada. In addition to its favorable underwriting results, the company maintains a conservative investment portfolio, which provides a consistent source of investment income. This combination of underwriting results and investment income has greatly supported the growth in capitalization over the years.”

Best noted that “partially offsetting these rating factors are LAWPRO’s rising costs associated with defending claims. Furthermore, LAWPRO’s unique business niche exposes it to changes in the economy and litigation environment.”