Fitch Assigns 'A-' IFS rating to ProAssurance Specialty Insurance Company; Outlook Stable

Fitch Ratings has assigned an 'A-' Insurer Financial Strength (IFS) rating to ProAssurance Specialty Insurance Company, a wholly-owned operating subsidiary of ProAssurance Corporation.

The Rating Outlook is Stable. Fitch has also withdrawn the rating of ProAssurance Specialty Insurance Company, Inc.,

The rating of ProAssurance Specialty Insurance Company, Inc. is withdrawn due to a reorganization of this entity via a merger with Noetic Specialty Insurance Company and the combined entity's name was changed to ProAssurance Specialty Insurance Company

Key Rating Drivers

ProAssurance Specialty Insurance Company is a wholly-owned operating subsidiary of ProAssurance Corporation, which had its ratings affirmed on Oct. 5, 2023.

Fitch considers the rated insurance subsidiaries of ProAssurance Corporation to be Core, and as a result, all are assigned the group Insurer Financial Strength rating. These entities share common management, resources and brand, further, only normal regulatory barriers exist to dividend movement between subsidiaries and up to the parent. Fitch believes ProAssurance Corporation has adequate financial strength to support its operating subsidiaries and management is willing to do so, although no formal support agreements are in place.

RATING SENSITIVITIES

Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade:

An improvement in company profile;

Improved view of capitalization including operating leverage below .75x and a Prism score of 'Very Strong' or better;

A sustained GAAP calendar-year combined ratio of 101% or better.

Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade:

A sustained increase in financial leverage above 30%;

A sustained GAAP calendar-year combined ratio above 107%;

Adverse reserve development in excess of 5% of prior year equity;

A view of capitalization and leverage that is considered below the current rating category.

REFERENCES FOR SUBSTANTIALLY MATERIAL SOURCE CITED AS KEY DRIVER OF RATING

The principal sources of information used in the analysis are described in the Applicable Criteria.

RATING ACTIONS

Entity / Debt

Rating

Prior

Proassurance Specialty Insurance Company, Inc.

LT IFS

WD

Withdrawn

A-

Proassurance Specialty Insurance Company

LT IFS

A-

New Rating

WD

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Additional information is available on www.fitchratings.com