Best’s News & Research Service - August 16, 2022 04:20 PM (EDT)
AM Best Comments on Credit Ratings of MAG Mutual Holding Company’s Members Following Announced MDAdvantage Acquisition
- August 16, 2022 04:20 PM (EDT)
Oldwick //BestWire// - AM Best has commented that the Credit Ratings (ratings) of MAG Mutual Insurance Company (Atlanta, GA) and Professional Security Insurance Company (Scottsdale, AZ) (collectively referred to as MAG Mutual) remain unchanged following the announcement that it has agreed to acquire MDAdvantage Insurance Company of New Jersey (MDAdvantage) (Lawrenceville, NJ). The transaction is subject to shareholder and regulatory approvals and is expected to close before the end of 2022.
On Aug. 15, 2022, MAG Mutual announced that it had entered into a definitive agreement to acquire MDAdvantage, one of the top three providers of medical professional liability insurance in New Jersey. MAG Mutual will finance the acquisition with existing cash resources.
AM Best anticipates MAG Mutual will continue to maintain supportive risk-adjusted capitalization and overall balance sheet strength, which is assessed by AM Best as strongest. MAG Mutual’s adequate operating performance, neutral business profile and appropriate enterprise risk management assessments are not expected to be impacted by the transaction.
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.