A.M. Best Co. has assigned a financial strength rating of B++, very good to Bermuda-based Coastal Medical Insurance Ltd. The rating outlook is stable.

In a Press statement the ratings agency said: ?This rating reflects Coastal?s very good capitalisation, its long-term favourable operating results, which are generated by sound underwriting and risk management programs, an experienced senior management team and a conservative investment philosophy.?

The positive rating factors are partially offset by the company?s limited market scope, its fluctuations in year-to-year results and its relatively high retention levels.

However, A.M. Best said: ?These concerns are somewhat mitigated due to explicit as well as implicit parental support, based on the strategic importance of Coastal within the overall risk management programme of the Meridian Health System (Meridian).?

Meridian?s Risk Management and Insurance Department provides captive management services to Coastal.

Its risk management programme for the hospital system establishes risk control policies and procedures, which include safety education, data collection and evaluation, claims management and risk financing. The rating also considers the role Coastal serves in providing hospital professional and general liability insurance to employed and contracted physicians within Meridian.