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
of “a-” of Medmarc Mutual Insurance Company (Medmarc Mutual) and
its two wholly-owned subsidiaries, Medmarc Casualty Insurance Company
and Noetic Specialty Insurance Company. All three companies share
in an intercompany pooling arrangement and are collectively referred to
as the Medmarc Insurance Group (Medmarc Group). The companies are
all domiciled in Montpelier, VT.
The under review status follows the announcement that Medmarc Group has
entered into a definitive agreement under which it will become part of
the ProAssurance Corporation (PRA) (Birmingham, AL) [NYSE: PRA]
through an all cash transaction. The operating companies of PRA are
collectively referred to as the ProAssurance Group(ProAssurance).
The transaction (which will require the demutualization of Medmarc
Mutual) is expected to close by year-end 2012 and is subject to
regulatory approval.
Medmarc Group’s ratings will remain under review pending regulatory
approval as well as any additional discussions A.M. Best has with the
new owner to determine Medmarc Group’s strategic fit within
ProAssurance, a much larger, more diversified organization. The positive
implications reflect the potentially positive impact for Medmarc Group
should it become a member of the ProAssurance organization in the future.
The methodology used in determining these ratings is Best’s Credit
Rating Methodology, which provides a comprehensive explanation of A.M.
Best’s rating process and contains the different rating criteria
employed in the rating process. Key criteria utilized include: “Risk
Management and the Rating Process for Insurance Companies”; “Rating
Members of Insurance Groups”; and “Understanding BCAR for
Property/Casualty Insurers.” Best’s Credit Rating Methodology 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 © 2012 by A.M. Best Company, Inc.ALL RIGHTS
RESERVED.
A.M. Best Co.
Marc Liebowitz, 908-439-2200, ext. 5071
Senior
Financial Analyst
marc.liebowitz@ambest.com
or
Gerard
Altonji, 908-439-2200, ext. 5626
Assistant Vice President
gerard.altonj@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
Source: A.M. Best Co.