A.M. Best Places Ratings of Medmarc Mutual Insurance Company and Its Affiliates Under Review

OLDWICK, N.J.--(BUSINESS WIRE)-- A.M. Best Co. has placed under review with positive implications the financial strength rating of A- (Excellent) and issuer credit rating of “a-” of Medmarc Mutual Insurance Company (Medmarc Mutual) and its two wholly-owned subsidiaries, Medmarc Casualty Insurance Company and Noetic Specialty Insurance Company. All three companies share in an intercompany pooling arrangement and are collectively referred to as the Medmarc Insurance Group (Medmarc Group). The companies are all domiciled in Montpelier, VT.

The under review status follows the announcement that Medmarc Group has entered into a definitive agreement under which it will become part of the ProAssurance Corporation (PRA) (Birmingham, AL) [NYSE: PRA] through an all cash transaction. The operating companies of PRA are collectively referred to as the ProAssurance Group(ProAssurance). The transaction (which will require the demutualization of Medmarc Mutual) is expected to close by year-end 2012 and is subject to regulatory approval.

Medmarc Group’s ratings will remain under review pending regulatory approval as well as any additional discussions A.M. Best has with the new owner to determine Medmarc Group’s strategic fit within ProAssurance, a much larger, more diversified organization. The positive implications reflect the potentially positive impact for Medmarc Group should it become a member of the ProAssurance organization in the future.

The methodology used in determining these ratings is Best’s Credit Rating Methodology, which provides a comprehensive explanation of A.M. Best’s rating process and contains the different rating criteria employed in the rating process. Key criteria utilized include: “Risk Management and the Rating Process for Insurance Companies”; “Rating Members of Insurance Groups”; and “Understanding BCAR for Property/Casualty Insurers.” Best’s Credit Rating Methodology can be found at www.ambest.com/ratings/methodology.

Founded in 1899, A.M. Best Company is the world’s oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com.

Copyright © 2012 by A.M. Best Company, Inc.ALL RIGHTS RESERVED.

A.M. Best Co.Marc Liebowitz, 908-439-2200, ext. 5071
Senior Financial Analyst
marc.liebowitz@ambest.com
or
Gerard Altonji, 908-439-2200, ext. 5626
Assistant Vice President
gerard.altonj@ambest.com
or
Rachelle Morrow, 908-439-2200, ext. 5378
Senior Manager, Public Relations
rachelle.morrow@ambest.com
or
Jim Peavy, 908-439-2200, ext. 5644
Assistant Vice President, Public Relations
james.peavy@ambest.com

Source: A.M. Best Co.