S&P affirms ProAssurance

Standard & Poor's said it affirmed the BBB long-term counterparty credit rating on ProAssurance Corp.

The outlook is stable.

The affirmation follows news that the company has agreed to acquire Medmarc Insurance Group for about $150 million and Independent Nevada Doctors Insurance Exchange for undisclosed terms that ProAssurance states to be immaterial to its operations.

The transactions, which will be funded through all-cash transactions, are expected to close by the end of 2012, S&P said.

The affirmation reflects that the announced acquisitions will not change the expectation for the company's the agency said.

The Medmarc acquisition will modestly increase ProAssurance's risk profiles because the profitability of the new product liability line is more uncertain than its existing products and its volatility could be higher, S&P said.

But these risks are mitigated by the very small scale of the new operation compared with ProAssurance and its very low premium leverage, the agency said.

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