After 20 years of maintaining an “Excellent” rating, LAMMICO has received an upgrade in its financial strength rating to A from A- from A.M. Best. Here’s why:

• Leadership position as a long-term financially stable insurance company.

• Conservative loss reserving philosophy.

• High policyholder retention rate.

This recent upgrade reinforces our company’s dedication to its insureds by maintaining a conservative track record, ensuring that LAMMICO will be here to offer unparalleled service to our policyholders for many years to come. A.M. Best is the world’s oldest and most authoritative source of insurer financial performance.

How we stay financially lean

By law, LAMMICO is audited by the Louisiana Department of Insurance at least every three to five years. But LAMMICO goes above and beyond just the legally required minimum financial checks and balances to allow third-party monitoring services like A.M. Best to survey our financial operating performance.

For over 20 years, we have been applauded by A.M. Best for our coverage and service to physicians and surgeons, other health care providers, and hospitals and facilities. LAMMICO’s performance, based on financial ratios that are specific to insurance companies, is comparable to other medical professional liability companies similar to LAMMICO. With only 120 employees and three offices serving over 6,700 health care providers and facilities throughout Louisiana and other states, we aim to sustain the efficient and lean business that serves you today.

How our stability benefits policyholders

• Coverage in the event of need to pay adverse judgments against insureds.

• Local, aggressive legal defense and personalized claim handling.

• Excellent operating procedures and lower claim levels lead to stronger surplus.

• Surplus is returned to LAMMICO policyholders as a dividend payout.

• Sound finances afford the ability for LAMMICO to offer higher quality risk management education.

• Policyholders who learn from our patient safety experts help to mitigate potential claims.

The defining feature of a mutual company is that its policyholders are also its owners, which provides them the possibility of receiving distributions of profits in the form of dividends. LAMMICO has distributed seven consecutive dividends since 2008. LAMMICO dividends are distributed evenly based on individual premium values. The dividend paid in 2014 was 10.5% of the LAMMICO premium to each policyholder (excluding tail policies and medical student policies), which amounted to approximately $5 million. The Department of Insurance regulates how insurance companies can distribute dividends, and they have very specific rules on dividend distributions to which we adhere for the benefit of our insureds.

Medical professional liability claims may take long to settle (possibly over 10 years). The premiums that we receive for any given year, along with investment income, must be sufficient to cover the claims that are reported in that calendar year, even though the final results might not be known for many years into the future.   

LAMMICO is also a national provider of continuing medical education for physicians. We are the only medical liability insurance carrier in Louisiana to earn Accreditation with Commendation from the Accreditation Council for Continuing Medical Education. Our Risk Management and Patient Safety Department staff has over 75 years of hospital risk management experience and leverages lessons learned from their individual experiences as health care professionals. LAMMICO personalizes our risk management services and activities to meet the specific needs of our insureds. We offer comprehensive assessment services to hospitals and facilities, including regulatory, criminal and operational risk. This kind of service is only possible because of the financial sustainability of our company.

Covering the Capital Region

Did you know LAMMICO now insures over 50 hospitals and facilities in Louisiana?

LAMMICO doesn’t take our position as Louisiana’s largest provider of medical professional liability insurance for granted. Our business model adapts to best handle today’s changing medical industry. Hospital and facility administrators are now part of the LAMMICO family of over 6,000 policyholders—a number that includes physicians, nurses, dentists, and advanced and allied health care providers. 

Practicing health care across the United States in general and Louisiana in particular has changed drastically. LAMMICO has responded accordingly, evolving our business model to meet the changing needs of our current policyholders and future insureds. Today, Louisiana’s only A-rated insurance carrier not only covers more physicians in our state than any other company, but we also underwrite hospitals and facilities. 

LAMMICO will never change what we stand for: a mutual company, owned by its policyholders, offering each individual peace of mind. When they decide to partner with us, health care practitioners practice with confidence. 

LAMMICO  |  (800) 452-2120  |  lammico.com

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