A.M. Best Upgrades Ratings of ProAssurance Corporation and Select Subsidiaries Business Wire 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 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. Contact: A.M. Best Co. Robert Raber, (908) 439-2200, ext. 5696 Financial Analyst firstname.lastname@example.org or Henry Witmer, (908) 439-2200, ext. 5907 Assistant Vice President email@example.com or Rachelle Morrow, (908) 439-2200, ext. 5378 Senior Manager, Public Relations firstname.lastname@example.org or Jim Peavy, (908) 439-2200, ext. 5644 Assistant Vice President, Public Relations email@example.com
A.M. Best Upgrades Ratings of ProAssurance Corporation and Select Subsidiaries
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