OLDWICK, N.J.--(BUSINESS WIRE)--
A.M. Best Co. has placed under review with positive implications
the financial strength rating of A- (Excellent) and issuer credit rating
(ICR) of “a-” of American Physicians Insurance Company (API)
(Austin, TX).
This rating action follows the announcement that API’s parent holding
company, American Physicians Service Group, Inc. (APS) (Austin,
TX) [NASDAQ: AMPH], has entered into an agreement where ProAssurance
Corporation (PRA) (Birmingham, AL) [NYSE: PRA] will acquire all of
the outstanding shares of APS.
Concurrently, A.M. Best also has commented that the ICR of “bbb-” of APS
will be withdrawn upon the closing of the transaction, as APS will
become an intermediate holding company within the PRA organization. If
the transaction fails to close, APS’ ICR will be unchanged.
PRA will acquire all of the outstanding shares of APS in an all-cash
transaction for $32.50 per share. When the transaction closes, API will
become part of PRA, which is a higher rated organization that has shown
great skill in integrating past acquisitions and supporting those
acquisitions in both an implicit and explicit manner.
The under review status will be reviewed following the closing of the
proposed acquisition, which is expected to take place by year end.
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”; and “Rating
Members of Insurance Groups.” 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
Senior Financial
Analyst
908-439-2200, ext. 5815
greg.williams@ambest.com
or
Henry
Witmer
Assistant Vice President
908-439-2200,
ext. 5097
henry.witmer@ambest.com
or
Rachelle
Morrow
Senior Manager, Public Relations
908-439-2200,
ext. 5378
rachelle.morrow@ambest.com
or
Jim
Peavy
Assistant Vice President, Public Relations
908-439-2200,
ext. 5644
james.peavy@ambest.com