A.M. Best Upgrades Ratings of ProAssurance Corporation and Select
OLDWICK, N.J. -- June 17, 2013
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. and ProAssurance 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
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
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
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
Henry Witmer, (908) 439-2200, ext. 5907
Assistant Vice President
Rachelle Morrow, (908) 439-2200, ext. 5378
Senior Manager, Public Relations
Jim Peavy, (908) 439-2200, ext. 5644
Assistant Vice President, Public Relations
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