OLDWICK, N.J.--(BUSINESS WIRE)--
A.M. Best Co. has upgraded the financial strength rating (FSR) to
A+ (Superior) from A (Excellent) and the issuer credit ratings (ICR) to
“aa-” from “a+” of the subsidiaries of ProAssurance Corporation
(PRA) (NYSE:PRA): ProAssurance Casualty Company(Okemos, MI), ProAssurance
Indemnity Company, Inc.andProAssurance Specialty Insurance
Company, Inc. The companies are collectively referred to as ProAssurance
Group (ProAssurance) and are domiciled in Birmingham, AL, unless
otherwise specified. The outlook has been revised to stable from
positive.
Additionally, A.M. Best has upgraded the ICR of PRA to “a-“” from
“bbb+”. Concurrently, A.M. Best has upgraded the indicative debt ratings
under the shelf registration to “a-“ from “bbb+” on the senior unsecured
debt, to “bbb+” from “bbb” on the subordinated debt and to “bbb” from
“bbb-” on the preferred stock of PRA. The outlook for these ratings has
been revised to stable from positive.
A.M. Best also has upgraded the FSR to A (Excellent) from A- (Excellent)
and the ICR to “a” from “a-” of the additional subsidiaries of PRA, Medmarc
Casualty Insurance Company (Medmarc) and Noetic Specialty
Insurance Company (Noetic) (both domiciled in Montpelier, VT). The
ratings have been removed from under review with positive implications
and assigned a stable outlook.
In addition, A.M. Best has affirmed the FSR of A (Excellent) and ICR of
“a” of Podiatry Insurance Company of America (PICA) and the FSR
of A- (Excellent) and ICR of “a-“ of PACO Assurance Company, Inc.
(PACO) (both domiciled in Springfield, IL), also subsidiaries of PRA.
The outlook for these ratings remains stable.
The upgrading of the ratings of ProAssurance reflects its superior
capital strength, excellent long-term trend of favorable operating
performance and strong business profile. The group’s ongoing
underwriting success is credited to conservative reserving practices,
disciplined underwriting standards and a focused proactive claim
handling philosophy. The rating considers the group’s market position
across multiple jurisdictions and diversification across multiple
aspects of medical professional liability and legal professional
liability lines. The ratings are positively impacted by the depth and
breadth of the organization’s enterprise risk management programs and
policies. The outlook is based on the expectation of continued superior
performance across multiple aspects of the organization.
The upgrading of Medmarc and Noetic’s ratings reflect their excellent
capital position, ongoing strong operational results and position in the
market as leader in medical device product liability. The ratings also
receive support from the companies’ relationship with its ultimate
parent, PRA, the continued integration of the company into the
organization and explicit operational and financial support provided by
members of the group.
The rating actions also reflect the financial flexibility afforded to
all of PRA’s subsidiaries. PRA’s financial leverage is very
conservative, interest coverage is strong, and it holds significant
levels of cash and short-term investments outside of the insurance
operating companies that are available for use without regulatory
approval.
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. Best’s Credit
Rating Methodology can be found at www.ambest.com/ratings/methodology.
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 © 2013 by A.M. Best Company, Inc.ALL RIGHTS
RESERVED.
A.M. Best Co.
Robert Raber, (908) 439-2200, ext. 5696
Financial
Analyst
robert.raber@ambest.com
or
Henry
Witmer, (908) 439-2200, ext. 5907
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
Source: A.M. Best Co.