A.M. Best Comments On The Ratings Of American Physicians Capital, Inc. And Its Subsidiaries

A.M. Best Co. has commented that the financial strength rating (FSR) of A- (Excellent) and issuer credit ratings (ICR) of “a-” of American Physicians Group and its primary member, American Physicians Assurance Corporation (American Physicians), are unchanged following the recent announcement that American Physicians Capital, Inc. (APCapital) (East Lansing, MI) (NASDAQ: ACAP) has entered into a definitive agreement to be acquired by The Doctors Company, an Interinsurance Exchange. The FSR of B+ (Good) and ICR of “bbb-” of APSpecialty Insurance Corporation (APSpecialty) also are unchanged. The transaction is expected to close during the fourth quarter of 2010, subject to shareholder and regulatory approval.

Under the terms announced, The Doctors Company will pay $41.50 per share, representing a 31% premium over APCapital’s closing price on July 7, 2010, the last trading day prior to the announcement of the acquisition. The terms of the merger agreement also prohibit APCapital from paying dividends or repurchasing its shares without the prior consent of The Doctors Company.

For Best’s Credit Ratings, an overview of the rating process and rating methodologies, please visit www.ambest.com/ratings.

The principal methodologies used in determining these ratings, including any additional methodologies and factors that may have been considered, can be found at www.ambest.com/ratings/methodology.

Founded in 1899, A.M. Best Company is a global full-service credit rating organization dedicated to serving the financial and health care service industries, including insurance companies, banks, hospitals and health care system providers. For more information, visit www.ambest.com.

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