OLDWICK, N.J.--(BUSINESS WIRE)--
A.M. Best Co. has upgraded the financial strength rating to A
(Excellent) from A- (Excellent) and issuer credit rating (ICR) to “a”
from “a-” of American Physicians Insurance Company (API) (Austin,
TX). Both ratings have been removed from under review with positive
implications and assigned a stable outlook.
The rating actions follow the acquisition of American Physicians
Service Group, Inc. (APS) (Austin, TX), the parent company of API,
by ProAssurance Corporation (PRA) (Birmingham, AL) [NYSE:PRA] on
November 30, 2010. As a new subsidiary of PRA, API will benefit from the
financial flexibility and support that PRA has consistently provided to
its operating companies. The ratings and outlook also reflect API’s
strong risk-adjusted capital position, favorable operating performance,
experienced management team and high policyholder retention levels.
A.M. Best also has withdrawn the ICR of “bbb-” of APS and assigned a
category “nr” to the ICR. With the acquisition, APS became an
intermediary holding company within the PRAorganization,and
APS’ common stock has been de-listed from the NASDAQ Stock Market.
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 the world's oldest and most
authoritative insurance rating and information source. For more
information, visit www.ambest.com.
Copyright © 2010 by A.M. Best Company, Inc.ALL RIGHTS
RESERVED.
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
Rachelle
Morrow
Senior Manager, Public Relations
908-439-2200,
ext. 5378
rachelle.morrow@ambest.com
or
Henry
Witmer, Assistant Vice President
908-439-2200, ext. 5097
henry.witmer@ambest.com
or
Jim
Peavy, Assistant Vice President, Public Relations
908-439-2200,
ext. 5644
james.peavy@ambest.com