OLDWICK, N.J.--(BUSINESS WIRE)--A.M. Best Co. has commented that the financial strength rating of A- (Excellent) and issuer credit ratings of “a-” of Doctors Company Insurance Group (TDC) and its members, led by The Doctors Company, an Interinsurance Exchange (Napa, CA), are unchanged following the recent announcement that FPIC Insurance Group Inc. (FPIC) (Jacksonville, FL) [NASDAQ: FPIC] has entered into a definitive agreement to be acquired by The Doctors Company, an Interinsurance Exchange. FPIC’s primary insurance company is First Professionals Insurance Company. The outlook for TDC’s ratings is positive.
When the acquisition is completed, shareholders will be entitled to receive cash totaling $362 million. With the acquisition of FPIC, TDC is purchasing a regional provider of medical professional liability insurance products with clients in 14 states, concentrated in Florida. The transaction assists TDC in achieving scale through continued geographic diversification and supports the group’s growth philosophy. The transaction is not subject to financing contingencies and is expected to close by the fourth quarter of 2011, subject to regulatory approval and a vote by FPIC’s shareholders to approve the sale.
On June 2, 2010, A.M. Best affirmed the current ratings of TDC.
The principal methodology used in determining these ratings is Best’s Credit Rating Methodology -- Global Life and Non-Life Insurance Edition, which provides a comprehensive explanation of A.M. Best’s rating process and highlights the different rating criteria employed. Additional key criteria utilized include: “Risk Management and the Rating Process for Insurance Companies”; “Understanding BCAR for Property/Casualty Insurers”; and “Rating Members of Insurance Groups.” Methodologies can be found at www.ambest.com/ratings/methodology.
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