A.M. Best Affirms Ratings of ProAssurance Group.OLDWICK, N.J. -- A.M. Best Co. has affirmed af·firm v. af·firmed, af·firm·ing, af·firms v.tr. 1. To declare positively or firmly; maintain to be true. 2. To support or uphold the validity of; confirm. v.intr. the financial strength rating (FSR (Free System Resource) In Windows 3.x, the amount of unused memory in various 64K blocks reserved for managing current applications. Every open window takes some space in this area. See Windows memory limitation. ) of A- (Excellent) of ProAssurance Group (ProAssurance) (Birmingham, AL) and assigned it an issuer credit rating (ICR (Intelligent Character Recognition or Image Character Recognition) The machine recognition of hand-printed characters as well as machine printing that is difficult to recognize. ) of "a-". Concurrently, A.M. Best has affirmed the senior debt rating of "bbb-" on ProAssurance Corporation's (PRA PRA - PRAgmatics. The language used by COPS for specification of code generators. ["Metalanguages of the Compiler Production System COPS", J. Borowiec, in GI Fachgesprach "Compiler-Compiler", ed W. Henhapl, Tech Hochs Darmstadt 1978, pp. 122-159]. ) (NYSE NYSE See: New York Stock Exchange :PRA) senior unsecured convertible debentures Convertible Debenture Any type of debenture that can be converted into some other security. Notes: For example, a convertible bond can be converted into stock. and ProAssurance Corporation's ICR of "bbb-". All ratings have been removed from under review and assigned stable outlooks. The ratings were placed under review following the February 28, 2005, announcement that PRA had entered into an agreement that provided for NCRIC NCRIC National Chemical Response and Information Center NCRIC National Center for Refugee and Immigrant Children Inc. (NCRIC) (Washington, DC) to be merged into ProAssurance through an all stock transaction. At that time A.M. Best downgraded the FSR of NCRIC to B++ (Very Good) from A- (Excellent) and placed NCRIC's rating under review with negative implications due to significant adverse loss reserve development reported in 2004. The transaction closed on August 3, 2005. Consequently, A.M. Best has removed from under review and affirmed the FSR of B++ (Very Good) and assigned an ICR of "bbb" to NCRIC. The completed NCRIC merger enables ProAssurance to expand on its leading market position and strengthen its Mid-Atlantic presence. ProAssurance management has extensive experience and demonstrated success with integrating new companies into existing operations by harnessing local market expertise while utilizing its extensive underwriting Underwriting 1. The process by which investment bankers raise investment capital from investors on behalf of corporations and governments that are issuing securities (both equity and debt). 2. The process of issuing insurance policies. and claims resources. A.M. Best has reviewed the current and prospective capitalization of the combined operations For the department of the British War Office during World War II, see . In the military, combined operations are operations conducted by forces of two or more allied nations acting together for the accomplishment of a single mission. See also
The ratings reflect ProAssurance Group's favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. risk-adjusted capitalization, comparatively strong operating performance and good business position as a leading writer of professional liability coverages in the U.S. ProAssurance also benefits from the diversified earnings source derived though its personal lines business, which accounts for nearly one-third of consolidated net earnings. Somewhat offsetting these positive rating factors are the group's elevated underwriting leverage position, the market risks associated with claims trends that have affected the professional liability industry and moderate fluctuations in the group's operating results in the early portion of the most recent five-year period. The FSR of A- (Excellent) has been affirmed and the ICRs of "a-" have been assigned with a stable outlook to the following ProAssurance Companies: --Medical Assurance Company, Inc. --ProNational Insurance Company --Red Mountain Casualty Insurance Company, Inc. The FSR of A- (Excellent) has been affirmed and the ICR of "a-" has been assigned with a stable outlook to MEEMIC Insurance Company. The FSR of B++ (Very Good) has been affirmed and the ICR of "bbb" has been assigned with a stable outlook to NCRIC, Inc. The FSR of B (Fair) has been affirmed and the ICR of "bb" has been assigned to Woodbrook Casualty Insurance, Inc. The rating outlook has been changed from positive to stable. The following debt ratings have been affirmed with a stable outlook: ProAssurance Corporation-- --"bbb-" on $107 million 3.9% senior unsecured convertible debentures, due 2023 For Best's Debt Ratings, all other Best's Ratings Best's rating A rating A.M. Best Co. assigns to insurance companies based on the company's ability to meet its obligations to its policyholders. , an overview of the rating process and rating methodologies, please visit www.ambest.com/ratings. A.M. Best Co., established in 1899, is the world's oldest and most authoritative insurance rating and information source. For more information, visit A.M. Best's Web site at www.ambest.com. |
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