On July 9, 2025, AM Best affirmed ProAssurance Group and its subsidiaries Financial Strength Rating (FSR) of “A” (Excellent). Concurrently, AM Best has affirmed the Long-Term Issue Credit Ratings (Long-Term IR) of ProAssurance Corporation as “a+” (Excellent). Financial strength is crucial for a healthcare liability insurer: Part of ProAssurance’s pledge is maintaining stability and sound investments for agency partners and insureds. The rating of ProAssurance Group represents its balance sheet strength, which AM Best assess as the strongest, as well as the group’s adequate operating performance, favorable business profile, and appropriate enterprise risk management (ERM).
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 compared 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.
The stable outlooks for ProAssurance Group and ProAssurance Corporation 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. At this time, AM Best does not expect the transaction with The Doctors Company to have any material change to ProAssurance Group’s rating fundamentals but will continue monitoring the progress and effects of this transaction once consummated.
You can read the full press release titled: AM Best Affirms Credit Ratings of ProAssurance Group Members and ProAssurance Corporation.