AM Best Comments on Credit Ratings of ProAssurance Group Members and ProAssurance Corporation Following Announced Acquisition by The Doctors Company Insurance Group
ProAssurance (NYSE: PRA) will be acquired by The Doctors Company Insurance Group (TDC Group), as announced on March 19, 2025. The transaction is expected to close in the first half of 2026, subject to regulatory approval. Following the acquisition, PRA will be 100% owned by The Doctors Company.
AM Best has confirmed that ProAssurance's Financial Strength Rating of A (Excellent) and Long-Term Issuer Credit Ratings of 'a+' (Excellent) remain unchanged, with a stable outlook. The ratings reflect ProAssurance's strongest balance sheet strength, adequate operating performance, favorable business profile, and appropriate enterprise risk management.
The merger combines the fourth-largest medical professional liability (MPL) insurance writer (ProAssurance) with the second-largest (TDC Group) in the United States, based on direct premiums written. AM Best will continue monitoring both organizations independently during the extended transaction period.
ProAssurance (NYSE: PRA) sarà acquisita dal The Doctors Company Insurance Group (TDC Group), come annunciato il 19 marzo 2025. Si prevede che la transazione si concluda nella prima metà del 2026, soggetta all'approvazione normativa. Dopo l'acquisizione, PRA sarà interamente di proprietà del The Doctors Company.
AM Best ha confermato che il Rating di Forza Finanziaria di A (Eccellente) di ProAssurance e i Rating di Credito a Lungo Termine di 'a+' (Eccellente) rimangono invariati, con un outlook stabile. I rating riflettono la solidità del bilancio di ProAssurance, una performance operativa adeguata, un profilo aziendale favorevole e una gestione del rischio d'impresa appropriata.
La fusione combina il quarto maggiore scrittore di assicurazioni per responsabilità professionale medica (MPL) (ProAssurance) con il secondo maggiore (TDC Group) negli Stati Uniti, basato sui premi diretti scritti. AM Best continuerà a monitorare entrambe le organizzazioni in modo indipendente durante il periodo di transazione prolungato.
ProAssurance (NYSE: PRA) será adquirida por The Doctors Company Insurance Group (TDC Group), como se anunció el 19 de marzo de 2025. Se espera que la transacción se cierre en la primera mitad de 2026, sujeta a la aprobación regulatoria. Tras la adquisición, PRA será 100% propiedad de The Doctors Company.
AM Best ha confirmado que la Calificación de Solidez Financiera de A (Excelente) de ProAssurance y las Calificaciones de Crédito del Emisor a Largo Plazo de 'a+' (Excelente) permanecen sin cambios, con una perspectiva estable. Las calificaciones reflejan la solidez del balance de ProAssurance, un rendimiento operativo adecuado, un perfil empresarial favorable y una gestión de riesgos empresariales apropiada.
La fusión combina al cuarto mayor asegurador de responsabilidad profesional médica (MPL) (ProAssurance) con el segundo mayor (TDC Group) en los Estados Unidos, basado en las primas directas escritas. AM Best continuará monitoreando ambas organizaciones de manera independiente durante el periodo de transacción extendido.
ProAssurance (NYSE: PRA)는 2025년 3월 19일 발표된 대로 The Doctors Company Insurance Group (TDC Group)에 인수될 예정입니다. 거래는 2026년 상반기에 마무리될 것으로 예상되며, 규제 승인을 받아야 합니다. 인수 후 PRA는 The Doctors Company의 100% 소유가 됩니다.
AM Best는 ProAssurance의 A (우수) 재무 건전성 등급과 'a+' (우수) 장기 발행자 신용 등급이 변동 없이 유지되며, 전망은 안정적이라고 확인했습니다. 이 등급은 ProAssurance의 강력한 재무 구조, 적절한 운영 성과, 유리한 사업 프로필 및 적절한 기업 위험 관리 반영합니다.
이번 합병은 미국에서 직접 작성된 보험료 기준으로 네 번째로 큰 의료 전문 책임 보험(MPL) 작성자(ProAssurance)와 두 번째로 큰 보험사(TDC Group)를 결합합니다. AM Best는 연장된 거래 기간 동안 두 조직을 독립적으로 계속 모니터링할 것입니다.
ProAssurance (NYSE: PRA) sera acquise par le The Doctors Company Insurance Group (TDC Group), comme annoncé le 19 mars 2025. La transaction devrait être finalisée au cours de la première moitié de 2026, sous réserve de l'approbation réglementaire. Après l'acquisition, PRA sera détenue à 100 % par le The Doctors Company.
AM Best a confirmé que la Note de Solidité Financière de A (Excellente) de ProAssurance et les Notes de Crédit à Long Terme de 'a+' (Excellente) restent inchangées, avec une perspective stable. Les notes reflètent la solidité du bilan de ProAssurance, une performance opérationnelle adéquate, un profil commercial favorable et une gestion des risques d'entreprise appropriée.
La fusion regroupe le quatrième plus grand assureur de responsabilité professionnelle médicale (MPL) (ProAssurance) avec le deuxième plus grand (TDC Group) aux États-Unis, basé sur les primes directes écrites. AM Best continuera de surveiller les deux organisations de manière indépendante pendant la période de transaction prolongée.
ProAssurance (NYSE: PRA) wird von der The Doctors Company Insurance Group (TDC Group) übernommen, wie am 19. März 2025 angekündigt. Die Transaktion soll in der ersten Hälfte des Jahres 2026 abgeschlossen werden, vorbehaltlich der behördlichen Genehmigung. Nach der Übernahme wird PRA zu 100 % im Besitz der The Doctors Company sein.
AM Best hat bestätigt, dass die Finanzstärke-Bewertung von A (Ausgezeichnet) und die langfristigen Emittenten-Kreditratings von 'a+' (Ausgezeichnet) von ProAssurance unverändert bleiben, mit einem stabilen Ausblick. Die Bewertungen spiegeln die stärkste Bilanzstärke von ProAssurance, eine angemessene Betriebsleistung, ein günstiges Geschäftsprofil und ein angemessenes Risikomanagement wider.
Die Fusion kombiniert den viertgrößten Anbieter von medizinischen Berufshaftpflichtversicherungen (MPL) (ProAssurance) mit dem zweitgrößten Anbieter (TDC Group) in den Vereinigten Staaten, basierend auf den direkt geschriebenen Prämien. AM Best wird beide Organisationen während des verlängerten Transaktionszeitraums weiterhin unabhängig überwachen.
- Merger creates stronger market position by combining 2nd and 4th largest MPL insurers
- Maintains excellent credit rating (A) and strongest balance sheet assessment
- Favorable business profile with adequate operating performance
- Extended transaction timeline (over 1 year) creates uncertainty
- Transaction subject to regulatory approval risk
Insights
The acquisition of ProAssurance by The Doctors Company Insurance Group represents significant consolidation in the medical professional liability (MPL) insurance market. This transaction will combine the second and fourth largest MPL insurers in the United States, creating a substantially stronger market presence that will likely reshape competitive dynamics in this specialized insurance segment.
From a market positioning perspective, this consolidation appears strategically sound. Both insurers maintain excellent financial strength ratings from AM Best (A with "a+" Long-Term Issuer Credit Ratings), suggesting the combined entity will continue operating from a position of financial stability. AM Best's decision to maintain ProAssurance's ratings unchanged indicates confidence in the transaction's fundamentals.
The extended closing timeline (first half of 2026) signals a complex regulatory approval process, typical for insurance industry mergers of this magnitude. Regulatory scrutiny will focus on market concentration concerns and potential impacts on policyholder protections. The lengthy integration period also provides ample time for operational planning and potential talent retention strategies.
While financial terms aren't disclosed, ProAssurance shareholders will benefit from certainty amid challenging market conditions affecting specialty insurers. For The Doctors Company, this acquisition represents an opportunity to achieve greater scale economies, expand geographic footprint, and enhance underwriting data capabilities - critical competitive advantages in the MPL sector where claims severity continues trending upward.
This acquisition signals a transformative shift in the medical professional liability landscape, where scale and specialized expertise increasingly determine market leadership. By acquiring ProAssurance, TDC Group strengthens its position as a dominant MPL carrier while eliminating a key competitor.
The transaction's strategic logic stems from several industry headwinds facing standalone MPL insurers: rising claims severity, challenging rate adequacy, and increasing reinsurance costs. Consolidation provides defensive positioning against these pressures through enhanced diversification and operating leverage.
AM Best's maintained ratings for both organizations suggest the transaction won't compromise their underwriting discipline or capital positions. Their "strongest" balance sheet assessment for ProAssurance represents the highest possible categorization, indicating robust capitalization that provides a solid foundation for this combination.
For healthcare providers insured by either company, this consolidation could eventually deliver superior risk management resources and potentially more stable premium environments. However, reduced competition might limit options for certain specialized healthcare segments where ProAssurance and TDC previously competed directly.
The lengthy regulatory approval process reflects the transaction's complexity and potential market impact. State insurance commissioners will scrutinize market concentration levels, particularly in states where both insurers maintain significant market share. Given their complementary geographic strengths, however, regulatory obstacles appear surmountable if appropriate concessions are provided in high-overlap markets.
The ratings reflect ProAssurance’s balance sheet strength, which AM Best assesses as strongest, as well as its adequate operating performance, favorable business profile and appropriate enterprise risk management.
ProAssurance is the fourth-largest writer of medical professional liability (MPL) insurance in
AM Best does not expect the transaction to have any material change to ProAssurance’s rating fundamentals at this time. Both ProAssurance and TDC Group maintain current Long-Term ICRs of “a+” (Excellent) with stable outlooks. Given the extended nature of the transaction, AM Best will continue to evaluate each of these organizations independently while monitoring the progress and the effects of this transaction over time. As more detailed information becomes available, AM Best will reassess the ratings of both organizations taking into consideration the planned synergies and efficiencies gained from the transaction.
This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best's Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.
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Connor Brach, CFA, FRM
Associate Director
+1 908 882 1668
connor.brach@ambest.com
Christopher Sharkey
Associate Director, Public Relations
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Vicky Riggs
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vicky.riggs@ambest.com
Al Slavin
Senior Public Relations Specialist
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Source: AM Best
FAQ
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