A.M. Best Comments On ProAssurance’s Planned Acquisition Of American Physicians Service Group, Inc.
A.M. Best Co. has commented that the financial strength rating of A (Excellent) and issuer credit ratings (ICR) of “a” of ProAssurance Group (ProAssurance) and its members and the ICR of “bbb” of its parent holding company, ProAssurance Corporation (PRA) (Birmingham, AL) [NYSE: PRA] are unchanged following the announcement of PRA’s proposed acquisition of American Physicians Service Group, Inc. (APS) (Austin, TX) [NASDAQ: AMPH].
Pursuant to the agreement, PRA will acquire all of the outstanding shares of APS in an all-cash transaction for $32.50 per share. The transaction is not subject to financing contingencies and is not expected to materially impact ProAssurance’s risk-adjusted capitalization. The acquisition, which is expected to close by year end, will enhance PRA’s geographic diversification efforts, as PRA will immediately gain a strong market presence in Texas. While execution risk is always a concern, it is mitigated somewhat by PRA’s proven track record of smoothly integrating new acquisitions into the organization.
The principal methodology used in determining these ratings is Best’s Credit Rating Methodology -- Global Life and Non-Life Insurance Edition , which provides a comprehensive explanation of A.M. Best’s rating process and highlights the different rating criteria employed. Additional key criteria utilized include: “Risk Management and the Rating Process for Insurance Companies”; “Understanding BCAR for Property/Casualty Insurers”; “ Rating Members of Insurance Groups”; and “ A.M. Best’s Ratings & the Treatment of Debt.” Methodologies 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
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV