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FOR IMMEDIATE RELEASE
OLDWICK - JULY 28, 2015 03:16 PM (EDT)
A.M. Best has commented that the financial strength rating of A++ (Superior) and the issuer credit ratings (ICR) of "aa+" of the members of MedPro Group (MedPro) (headquartered in Fort Wayne, IN), are unchanged following MedPro's recently announced acquisition of PLICO, Inc. (PLICO) (Oklahoma City, OK). The ratings apply to The Medical Protective Company (Fort Wayne, IN), its affiliate, Princeton Insurance Company (Princeton, NJ) and its two reinsured affiliates, MedPro RRG Risk Retention Group and AttPro RRG Reciprocal Risk Retention Group (both domiciled in the District of Columbia). Under the terms of the transaction, MedPro has agreed to acquire 100% of PLICO in an all-cash transaction. The transaction is expected to occur in the third quarter, subject to customary closing conditions and regulatory approvals. PLICO is currently not rated by A.M. Best.
MedPro maintains an excellent level of risk-adjusted capitalization and favorable long-term operating performance with a significant market position in the medical professional liability line of business. This transaction will enhance MedPro's knowledge of the Oklahoma medical professional liability market, and enable PLICO to grow and expand its mission of serving the Oklahoma medical community. The transaction adds over $60 million to MedPro's $2.1 billion policyholders' surplus base. A.M. Best expects MedPro to maintain its excellent risk-adjusted capitalization following the close of the transaction.
This press release relates to rating(s) 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 visit A.M. Best's Ratings & Criteria Center.
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