AM Best Comments on Credit Ratings of The Doctors Company Insurance Group Members Following Announced Acquisition of ProAssurance Corporation
AM Best has maintained its ratings for The Doctors Company Insurance Group (TDC Group) following the announcement of their planned acquisition of ProAssurance (PRA). The transaction, announced on March 19, 2025, will combine the second and fourth-largest medical professional liability insurers in the United States.
TDC Group maintains its Financial Strength Rating of A (Excellent) and Long-Term Issuer Credit Ratings of 'a+', with a stable outlook. These ratings reflect TDC Group's strongest balance sheet strength, adequate operating performance, neutral business profile, and appropriate enterprise risk management.
The acquisition is expected to close in the first half of 2026, subject to regulatory approval. Upon completion, ProAssurance will become 100% owned by The Doctors Company. AM Best currently anticipates no material changes to TDC Group's rating fundamentals and will continue evaluating both organizations independently during the transaction process.
AM Best ha mantenuto le sue valutazioni per The Doctors Company Insurance Group (TDC Group) dopo l'annuncio della loro acquisizione pianificata di ProAssurance (PRA). La transazione, annunciata il 19 marzo 2025, unirà i secondi e quarti maggiori assicuratori di responsabilità professionale medica negli Stati Uniti.
TDC Group mantiene il suo Rating di Solvibilità Finanziaria di A (Eccellente) e Rating di Credito a Lungo Termine di 'a+', con un outlook stabile. Queste valutazioni riflettono la solidità del bilancio di TDC Group, una performance operativa adeguata, un profilo aziendale neutro e una gestione del rischio d'impresa appropriata.
Si prevede che l'acquisizione si chiuda nella prima metà del 2026, soggetta all'approvazione normativa. Una volta completata, ProAssurance diventerà interamente di proprietà di The Doctors Company. AM Best attualmente non prevede cambiamenti materiali nei fondamenti di rating di TDC Group e continuerà a valutare entrambe le organizzazioni in modo indipendente durante il processo di transazione.
AM Best ha mantenido sus calificaciones para The Doctors Company Insurance Group (TDC Group) tras el anuncio de su adquisición planificada de ProAssurance (PRA). La transacción, anunciada el 19 de marzo de 2025, combinará a los segundos y cuartos mayores aseguradores de responsabilidad profesional médica en los Estados Unidos.
TDC Group mantiene su Calificación de Solidez Financiera de A (Excelente) y Calificaciones de Crédito del Emisor a Largo Plazo de 'a+', con una perspectiva estable. Estas calificaciones reflejan la solidez del balance de TDC Group, un desempeño operativo adecuado, un perfil empresarial neutral y una gestión de riesgos empresarial adecuada.
Se espera que la adquisición se cierre en la primera mitad de 2026, sujeta a la aprobación regulatoria. Una vez completada, ProAssurance será 100% propiedad de The Doctors Company. AM Best actualmente no anticipa cambios materiales en los fundamentos de calificación de TDC Group y continuará evaluando ambas organizaciones de manera independiente durante el proceso de transacción.
AM Best는 The Doctors Company Insurance Group (TDC Group)의 ProAssurance (PRA) 인수 계획 발표에 따라 그들의 평가를 유지했습니다. 이 거래는 2025년 3월 19일에 발표되었으며, 미국에서 두 번째와 네 번째로 큰 의료 전문 책임 보험사를 통합하게 됩니다.
TDC Group은 A (우수)의 재무 건전성 등급과 'a+'의 장기 발행자 신용 등급을 유지하며, 안정적인 전망을 가지고 있습니다. 이러한 평가는 TDC Group의 강력한 재무 구조, 적절한 운영 성과, 중립적인 비즈니스 프로필 및 적절한 기업 위험 관리 반영합니다.
인수는 2026년 상반기 중에 마무리될 것으로 예상되며, 규제 승인이 필요합니다. 완료되면 ProAssurance는 The Doctors Company의 100% 소유가 됩니다. AM Best는 현재 TDC Group의 등급 기초에 대한 실질적인 변화가 없을 것으로 예상하고 있으며, 거래 과정에서 두 조직을 독립적으로 계속 평가할 것입니다.
AM Best a maintenu ses notations pour The Doctors Company Insurance Group (TDC Group) suite à l'annonce de leur projet d'acquisition de ProAssurance (PRA). La transaction, annoncée le 19 mars 2025, réunira les deuxième et quatrième plus grands assureurs de responsabilité professionnelle médicale aux États-Unis.
TDC Group maintient sa Notation de Solidité Financière de A (Excellent) et ses Notations de Crédit à Long Terme de 'a+', avec une perspective stable. Ces notations reflètent la solidité du bilan de TDC Group, une performance opérationnelle adéquate, un profil commercial neutre et une gestion appropriée des risques d'entreprise.
L'acquisition devrait être finalisée au cours du premier semestre 2026, sous réserve de l'approbation réglementaire. Une fois achevée, ProAssurance sera entièrement détenue par The Doctors Company. AM Best n'anticipe actuellement aucun changement matériel dans les fondamentaux de notation de TDC Group et continuera à évaluer les deux organisations de manière indépendante pendant le processus de transaction.
AM Best hat seine Ratings für The Doctors Company Insurance Group (TDC Group) nach der Ankündigung ihrer geplanten Übernahme von ProAssurance (PRA) beibehalten. Die Transaktion, die am 19. März 2025 angekündigt wurde, wird die zweit- und viertgrößten Anbieter von Berufshaftpflichtversicherungen für Mediziner in den Vereinigten Staaten zusammenführen.
TDC Group behält seine Finanzstärke-Bewertung von A (Ausgezeichnet) und Langfristige Emittenten-Kreditratings von 'a+' mit einem stabilen Ausblick. Diese Bewertungen spiegeln die starke Bilanz von TDC Group, angemessene Betriebsergebnisse, ein neutrales Geschäftsprofil und ein angemessenes Risikomanagement wider.
Die Übernahme wird voraussichtlich in der ersten Hälfte des Jahres 2026 abgeschlossen, vorbehaltlich der regulatorischen Genehmigung. Nach Abschluss wird ProAssurance zu 100 % im Besitz von The Doctors Company sein. AM Best erwartet derzeit keine wesentlichen Änderungen an den Bewertungsgrundlagen von TDC Group und wird beide Organisationen während des Transaktionsprozesses weiterhin unabhängig bewerten.
- Combination of second and fourth-largest MPL insurers strengthens market position
- TDC Group maintains 'strongest' balance sheet strength assessment
- Stable rating outlook indicates financial stability
- Extended transaction timeline (over 1 year) may create integration uncertainty
- Transaction remains subject to regulatory approval
Insights
The acquisition of ProAssurance by The Doctors Company Insurance Group represents a 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 formidable market leader with enhanced scale and potentially improved competitive positioning.
The announcement provides several positive signals for ProAssurance shareholders. While specific financial terms weren't disclosed, acquisitions typically offer a premium to current trading prices, potentially delivering immediate value to PRA shareholders. With ProAssurance's current
AM Best's commentary maintaining TDC Group's excellent ratings (A Financial Strength Rating and "a+" Long-Term Issuer Credit Ratings) despite the acquisition announcement suggests confidence in the strategic rationale and financial prudence of the transaction. The rating agency's statement that it doesn't expect "material change to TDC Group's rating fundamentals" indicates the acquisition is viewed as financially sound rather than overly leveraged or risky.
The extended timeline (closing expected in first half of 2026) and requirement for regulatory approval reflects the complexity and size of this transaction in a highly regulated industry. This consolidation follows the broader trend of strategic M&A activity in the insurance sector, where scale advantages, technology investments, and administrative efficiencies are increasingly important competitive factors.
The ratings reflect TDC Group’s balance sheet strength, which AM Best assesses as strongest, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management.
TDC Group is the second-largest writer of medical professional liability (MPL) insurance in
AM Best does not expect the transaction to have any material change to TDC Group’s rating fundamentals at this time. 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
+1 908 882 2310
christopher.sharkey@ambest.com
Sharon Marks
Director
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Al Slavin
Senior Public Relations Specialist
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al.slavin@ambest.com
Source: AM Best
FAQ
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