AM Best: ProAssurance maintains stable credit ratings after acquisition announcement by TDC Group

Investing.com -- Following the announcement on March 19, 2025, that The Doctors Company Insurance Group (TDC Group) will acquire all outstanding shares of ProAssurance Corporation (NYSE: NYSE:PRA), the credit ratings of both ProAssurance Group and ProAssurance Corporation remain unchanged according to AM Best. The Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Ratings of “a+” (Excellent) for ProAssurance Group are still in effect, with a stable outlook.

These ratings are indicative of ProAssurance’s robust balance sheet, adequate operating performance, favorable business profile, and suitable enterprise risk management, as assessed by AM Best. ProAssurance currently stands as the fourth-largest writer of medical professional liability (MPL) insurance in the United States based on direct premiums written. Meanwhile, TDC Group is the second largest.

ProAssurance Corporation, a publicly traded entity on the New York Stock Exchange, is set to be fully owned by The Doctors Company, An Interinsurance Exchange, the leading member of TDC Group. The transaction, subject to regulatory approval, is anticipated to close within the first half of 2026.

At this time, AM Best does not foresee any significant changes to ProAssurance’s rating fundamentals as a result of the transaction. Both ProAssurance and TDC Group currently maintain Long-Term ICRs of “a+” (Excellent) with stable outlooks. Given the extended nature of the transaction, AM Best will continue to evaluate each organization 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 article was generated with the support of AI and reviewed by an editor. For more information see our T&C.