AM Best Comments on ProAssurance Ratings After Acquisition
OLDWICK, N.J. – AM Best has affirmed the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Ratings of “a+” (Excellent) for the members of the ProAssurance Group following the March 19, 2025, announcement that The Doctors Company Insurance Group (TDC Group) will acquire all outstanding shares of ProAssurance Corporation (PRA) (NYSE: PRA). The outlook for ProAssurance’s Credit Ratings remains stable.
AM Best stated that the ratings reflect ProAssurance’s strongest balance sheet strength, adequate operating performance, a favorable business profile, and appropriate enterprise risk management. This evaluation underscores the financial stability of ProAssurance amidst the acquisition.
Post-acquisition, PRA, currently listed on the New York Stock Exchange, will become wholly owned by The Doctors Company, an Interinsurance Exchange and lead member of the TDC Group. The transaction is anticipated to close within the first half of 2026, contingent on regulatory approvals. AM Best anticipates no significant changes to ProAssurance’s rating fundamentals at this time.
Both ProAssurance and TDC Group currently hold Long-Term ICRs of “a+” (Excellent) with stable outlooks. AM Best intends to independently evaluate both organizations during the extended transaction period, closely monitoring the progress and effects of the acquisition over time. As more detailed information becomes available, AM Best will re-evaluate the ratings of both entities, taking into account the planned synergies and efficiencies that result from the acquisition.
This merger combines two major players in the medical professional liability (MPL) insurance market in the United States. ProAssurance is currently the fourth-largest writer of MPL insurance based on direct premiums, while TDC Group holds the second-largest position.
AM Best does not expect the transaction to have any material change to ProAssurance’s rating fundamentals at this time.
For further details on the ratings and related disclosures, including the office responsible for issuing the individual ratings, please consult AM Best’s Recent Rating Activity web page. Additional information regarding the use and limitations of Credit Rating opinions can be found in the Guide to Best’s Credit Ratings. Proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments, and AM Best press releases should be referenced in the Guide to Proper Use of Best’s Ratings & Assessments.
AM Best is a global credit rating agency, news publisher, and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company has a global presence, with offices in over 100 countries. For more information, visit www.ambest.com.
Key Takeaways:
- AM Best affirmed ProAssurance’s ratings following the acquisition announcement.
- The ratings reflect a strong financial standing for ProAssurance.
- The transaction is expected to conclude in the first half of 2026, subject to regulatory approval.
- AM Best will continue to monitor both organizations independently.
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