The outlook of these Credit Ratings (ratings) is stable. See below for a detailed list of the companies. All of these companies are indirect subsidiaries of
Along with these rating actions,
The ratings of
ProAssurance Group’s balance sheet strength assessment reflects its risk-adjusted capitalization being at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR), the strength of its reserves and the quality of its investments. The group’s operating performance consistently has outperformed peers in the medical professional liability (MPL) insurance sector, reflecting disciplined underwriting standards, conservative reserving practices and proactive legal defense and claims handling philosophy. The ratings also consider the group’s market position as one of the leading MPL insurers in
The ratings of PACO reflects its balance sheet strength, which
PACO’s ratings consider its balance sheet strength, which is supported by risk-adjusted capitalization that measures in the strongest category. PACO’s operating performance generally has improved since being acquired by PRA in 2010. PACO broadens PRA’s MPL lines of business to include chiropractors and acupuncturists, another niche medical specialty with favorable loss parameters. The company’s underwriting has been modestly profitable, benefiting from favorable industry trends in claims and losses in a lower-risk line of business during the soft market.
The ratings of EAIG reflect its balance sheet strength, which
EAIG’s ratings consider its balance sheet strength, which is supported by risk-adjusted capitalization that measures in the strongest category. The group has produced favorable underwriting results; however, investment returns have been relatively modest, leading to overall returns that are more in line with the peer group composite. The members of EAIG, which operate under an intercompany pooling reinsurance agreement, have been able to write new business by further expanding its programs in the eastern half of
The ratings of Eastern Re reflect its balance sheet strength, which
The rating action on Eastern Re reflects a change in A.M. Best’s assessment of the company’s business profile due to its run-off status and its diminished future business prospects, despite an ongoing connection with the parent from shared clientele. Eastern Re’s balance sheet strength is supported by risk-adjusted capitalization that measures in the strongest category. However, some of the cells within Eastern Re fall short of supporting the overall company’s consolidated financial strength and remain a concern. Eastern Re’s specialization in alternative market workers’ compensation solutions and segregated portfolio cells creation and management was a growth engine for the entire
Each of the rating units discussed above also benefits from the financial flexibility provided by PRA, the ultimate parent. PRA’s financial leverage is conservative, its interest coverage is strong and it holds cash and short-term investments outside of the insurance operating companies that are available for use without regulatory approval. At the same time, surplus growth at most rating units has been limited over the past five years by the payment of significant dividends to PRA, which they have utilized to pay shareholders’ dividends and repurchase company stock. Nonetheless, management remains committed to maintaining capital at the rated entities at levels commensurate with their ratings.
The FSR of A+ (Superior) and the Long-Term ICR of “aa-” have been affirmed with stable outlooks for the following members of the
ProAssurance Casualty Company
ProAssurance Indemnity Company, Inc.
ProAssurance Specialty Insurance Company, Inc.
Medmarc Casualty Insurance Company
Noetic Specialty Insurance Company
Podiatry Insurance Company of America
- ProAssurance American Mutual, A
Risk Retention Group
The FSR of A (Excellent) and the Long-Term ICRs of “a+” have been affirmed with stable outlooks for the following members of the
Eastern Alliance Insurance Company
Allied Eastern Indemnity Company
Eastern Advantage Assurance Company
This press release relates to Credit Ratings that have been published on A.M. 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 A.M. Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Understanding Best’s Credit Ratings. For information on the proper media use of Best’s Credit Ratings and
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Jieqiu Fan, +1-908-439-2200, ext. 5372
Senior Financial Analyst
Senior Financial Analyst
Manager, Public Relations
Director, Public Relations