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 Co., an Interinsurance Exchange based in Napa, Calif., are unchanged, following the recent announcement that TDC will acquire American Physicians Capital Inc. The outlook for the ratings is positive.
TDC recently announced it had entered into a definitive agreement to acquire American Physicians of East Lansing Mich. AP Capital’s primary insurance company is American Physicians Assurance Corp. When the acquisition is completed, shareholders will be entitled to receive cash totaling $386 million. With the acquisition of AP Capital, TDC is purchasing a regional provider of medical professional liability insurance products, with clients in predominantly in the Midwest and West. 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 during the fourth quarter of 2010, subject to regulatory approval and a vote by AP Capital’s shareholders to approve the sale.
On June 7, 2010, A.M. Best affirmed the current ratings of Doctor’s Company Insurance Group.
Topics Mergers & Acquisitions AM Best
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