AM Best has affirmed the Financial Strength Rating (FSR) of A (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of “a+” (Excellent) of the members of ProAssurance Group. Concurrently, AM Best has affirmed the Long-Term ICR of “bbb+” (Good) and the indicative Long-Term Issue Credit Ratings (Long-Term IRs) of ProAssurance Corporation (PRA) (headquartered in Birmingham, AL). The outlook of these Credit Ratings (ratings) is stable. All companies are indirect subsidiaries of PRA. (See below for a detailed listing of subsidiaries and indicative Long-Term IRs.)

The ratings of ProAssurance Group reflect its balance sheet strength, which AM Best assesses as strongest, as well as its adequate operating performance, favorable business profile and appropriate enterprise risk management (ERM).

The group’s balance sheet strength assessment continues to be at the strongest level, with risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), remaining supportive of the strongest assessment. The balance sheet strength assessment benefits from conservative positioning of the investment portfolio, stable surplus position and financial flexibility provided by publicly traded parent, PRA. Underwriting leverage metrics have decreased in recent years as ProAssurance has shed business consistently amid reunderwriting initiatives, yet metrics remain elevated in comparison with medical professional liability (MPL) composite averages. Although surplus growth was reported in the two most recent years, capital accumulation has been inhibited somewhat by dividends to PRA, which the parent has utilized for stock repurchases and corporate expenses. AM Best assesses the group’s operating performance as adequate, with consistent underwriting losses over the most recent five-year period being more than offset by net investment income and realized capital gains. Underwriting results improved in the most recent year, partially attributable to favorable prior year loss reserve development. Overall operating ratios in recent years have benefited from some improvement in underwriting performance and the ongoing higher interest rate environment relative to earlier periods. The ratings also consider the group’s national market position as the fourth-largest writer of MPL insurance in the United States with solid breadth of product offerings across multiple disciplines, as well as geographic diversification. AM Best assesses the group’s ERM as appropriate, as the group maintains a developed ERM framework and risk management capabilities that generally are in line with its risk profile.

In March 2025, a definitive agreement was reached under which The Doctors Company Insurance Group (TDC Group) agreed to acquire all outstanding shares of PRA for $25 per share in a transaction valued at approximately $1.3 billion. The deal is expected to close in the first half of 2026, subject to customary closing conditions and receipt of regulatory approvals. PRA shareholders voted to approve the acquisition in June 2025 and the U.S. Federal Trade Commission granted early termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 in July 2025, satisfying one of the conditions for the closing of the pending acquisition. The acquisition remains subject to other customary closing conditions, including the receipt of remaining regulatory approvals, and both organizations will continue to operate independently until closing occurs. AM Best does not expect the transaction to have any material change to ProAssurance Group’s rating fundamentals at this time but will continue monitoring the progress and effects of this transaction once consummated.

The stable outlooks reflect AM Best’s expectation that the group will maintain its strongest level of balance sheet strength, supported by effective capital management, while ongoing initiatives implemented by management will maintain stable operating performance, supported by its favorable business profile.

Negative rating actions may occur if the group’s loss experience continues to impact underwriting profitability negatively and leads to further deterioration in operating performance trends. Negative rating action also may occur if the group’s balance sheet strength weakens, which could result from deterioration of risk-adjusted capitalization or adverse reserve development in its workers’ compensation or MPL books from rising claims frequency or severity, or changes in regulatory, legislative and judicial actions. While unlikely in the near term, positive rating actions may occur following a positive trend in operating performance that outpaces the group’s peers and materially contributes to surplus growth.

The FSR of A (Excellent) and the Long-Term ICRs of “a+” (Excellent) have been affirmed, with stable outlooks for the following members of ProAssurance Group:

• ProAssurance Indemnity Company, Inc.
• ProAssurance Specialty Insurance Company
• Medmarc Casualty Insurance Company
• ProAssurance Insurance Company of America
• ProAssurance American Mutual, A Risk Retention Group
• Allied Eastern Indemnity Company
• Eastern Advantage Assurance Company
• Eastern Alliance Insurance Company
• NORCAL Insurance Company
• NORCAL Specialty Insurance Company
• Medicus Insurance Company
• FD Insurance Company
• Preferred Physicians Medical Risk Retention Group, a Mutual Insurance Company

The following indicative Long-Term IRs under the shelf registration have been affirmed with stable outlooks:

ProAssurance Corporation—

-- “bbb+” (Good) on senior unsecured debt

-- “bbb” (Good) on senior subordinated debt

-- “bbb-” (Good) on preferred stock

This press release relates to Credit Ratings that have been published on AM 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 AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best's Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

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