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

Published 19/03/2025, 22:30
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Investing.com -- AM Best, the credit rating agency, has stated that the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICRs) of “a+” (Excellent) of The Doctors Company Insurance Group (TDC Group) remain unchanged following the announcement on March 19, 2025, that TDC Group will acquire all outstanding shares of ProAssurance Corporation (NYSE: NYSE:PRA). The outlook of TDC Group’s Credit Ratings is stable.

The ratings are a reflection of TDC Group’s balance sheet strength, which AM Best evaluates as strongest, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management.

Currently, TDC Group is the second-largest writer of medical professional liability (MPL) insurance in the United States, based on direct premiums written. They will be acquiring PRA, which is the fourth-largest MPL insurer in the United States. The transaction is expected to be finalized within the first half of 2026, pending regulatory approval. After the conclusion of the transaction, PRA will be 100% owned by The Doctors Company, An Interinsurance Exchange, the lead member of TDC Group.

AM Best does not anticipate any significant change to TDC Group’s rating fundamentals as a result of this transaction at this time. Due to 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.

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