OLDWICK, N.J.--(BUSINESS WIRE)--
A.M. Best Co. has commented that the financial strength rating of
A (Excellent) and issuer credit ratings (ICR) of “a” of ProAssurance
Group (ProAssurance) and its members and the ICR of “bbb” of its
parent holding company, ProAssurance Corporation (PRA)
(Birmingham, AL) [NYSE: PRA] are unchanged following the announcement of
PRA’s proposed acquisition of AmericanPhysicians Service
Group, Inc. (APS) (Austin, TX) [NASDAQ: AMPH].
Pursuant to the agreement, PRA will acquire all of the outstanding
shares of APS in an all-cash transaction for $32.50 per share. The
transaction is not subject to financing contingencies and is not
expected to materially impact ProAssurance’s risk-adjusted
capitalization. The acquisition, which is expected to close by year end,
will enhance PRA’s geographic diversification efforts, as PRA will
immediately gain a strong market presence in Texas. While execution risk
is always a concern, it is mitigated somewhat by PRA’s proven track
record of smoothly integrating new acquisitions into the organization.
The principal methodology used in determining these ratings is Best’s
Credit Rating Methodology -- Global Life and Non-Life Insurance Edition,
which provides a comprehensive explanation of A.M. Best’s rating process
and highlights the different rating criteria employed. Additional key
criteria utilized include: “Risk Management and the Rating Process for
Insurance Companies”; “Understanding BCAR for Property/Casualty
Insurers”; “Rating
Members of Insurance Groups”; and “A.M.
Best’s Ratings & the Treatment of Debt.” Methodologies can be
found at www.ambest.com/ratings/methodology.
Founded in 1899, A.M. Best Company is a global full-service credit
rating organization dedicated to serving the financial and health care
service industries, including insurance companies, banks, hospitals and
health care system providers. For more information, visit www.ambest.com.
Source: A.M. Best Co.
Contact:
A.M. Best Co.
Greg Williams, 908-439-2200, ext. 5815
Senior
Financial Analyst
greg.williams@ambest.com
or
Henry
Witmer, 908-439-2200, ext. 5097
Assistant Vice President
henry.witmer@ambest.com
or
Rachelle
Morrow, 908-439-2200, ext. 5378
Senior Manager, Public Relations
rachelle.morrow@ambest.com
or
Jim
Peavy, 908-439-2200, ext. 5644
Assistant Vice President, Public
Relations
james.peavy@ambest.com