A recent change in the A.M. Best rating for TIG Insurance Group indicates the company is still financially strong, according to Timothy Feuling, vice president of Chiropractic Benefit Services (CBS). TIG, part of the $32 billion Fairfax Financial Holdings group, underwrites the CBS program and was given a "Very Good" grade from the insurance rating service. A.M. Best stated that the "Very Good" rating is "assigned to companies which have, on balance, very good financial strength, operating performance and market profile. ...These companies, in our opinion, have a good ability to meet their ongoing obligations to policyholders."

Although the B++ (Very Good) rating is down from the previous A- (Excellent) rating, A.M. Best noted that the new rating "continues to reflect TIG's adequate level of capitalization even with consideration to the continued significance of affiliated invested assets."

A.M. Best added that it "believes that the company will benefit from improving market conditions within the commercial insurance sector." Teresa Hayes, CBS's Senior Underwriting Officer explained that the "Best rating change was due largely to TIG's not meeting its own goals, as laid out in its business plan, rather than any fundamental financial problems. TIG is now more focused than ever on achieving their goals and has the financial assets and expertise to do so."

Ms. Hayes is Vice President of the Chiropractic Malpractice Insurance program of Schaefer-Smith-Ankeney, which serves as the CBS broker.

She stressed that, as part of the Fairfax group, TIG has an advantage over many other insurance underwriters, many of which suffer from cash flow problems and too much debt. "Fairfax has considerable cash, access to credit lines and very little debt," Hayes noted.

The A.M. Best report on Fairfax notes that it maintains a "conservative liquidity position at the holding company, with cash in excess of $330 million which is expected to grow to $535 million by year-end."

"Right now, we're seeing a shake down in the insurance field," stated Feuling. "These are difficult times for many of companies and the ratings reflect the overall economic situation experienced by the industry. Fortunately for CBS clients, TIG and Fairfax have the financial strength and management skills to get through these hard times and come out a winner. CBS will continue to deliver a quality chiropractic malpractice insurance program. "We have always had a personal commitment to take good care of our doctors, and nothing will change that."

When asked whether any of the CBS doctors had expressed concern, Feuling said he had not received any calls or letters from doctors about the issue. "D.C.s are a very loyal group. They are loyal to chiropractic, and they are loyal to companies like CBS that are dedicated to promoting and strengthening their profession," he stated. "They are also savvy enough to understand the economic bumps everyone in America is going through right now. They know there's no need to worry when they're with the best chiropractic insurance program available."