A.M. Best Co. has commented that all ratings of Alabama-based ProAssurance Corporation’s (ProAssurance) insurance subsidiaries, the rating of its senior unsecured convertible debentures and the financial strength rating of Physicians Insurance Company of Wisconsin Inc. (PIC Wisconsin) (Madison, Wis.) remain unchanged following the announcement of ProAssurance’s planned acquisition of PIC Wisconsin through an all stock transaction.
The proposed transaction, which must be approved by PIC Wisconsin shareholders and is subject to state and federal regulatory approval, is expected to close during the second quarter of 2006.
The transaction calls for each share of PIC Wisconsin stock to be converted into shares of ProAssurance and will value PIC Wisconsin at approximately $100 million. When the transaction is completed, PIC Wisconsin is expected to be positioned as a sister company to ProAssurance’s main insurance subsidiaries.
The acquisition provides ProAssurance with a leadership position in Wisconsin and extends its business in other upper Midwestern and Western states. Being part of ProAssurance also allows PIC Wisconsin to gain ready access to the capital markets.
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