Insurance ratings standard-bearer A.M. Best Co. placed the financial strength rating of “A-” (excellent) of the Fort Wayne, Ind.-based Medical Protective Co. under review with developing implications.
This rating action follows last week’s announcement by the insurer’s parent company, General Electric Co., that it has signed a letter of intent with Omaha, Neb.-based Berkshire Hathaway Inc. for the sale of Medical Protective to National Indemnity Co., a Berkshire subsidiary. The transaction is scheduled to close on June 30, 2005, subject to completion of a definitive agreement as well as regulatory approvals.
The rating will remain under review pending discussions with the new owner concerning its strategic plan for Medical Protective. The developing implications reflect anticipated capital enhancement given the relative financial strength of National Indemnity.
Topics AM Best
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