Moody's rates ProAssurance notes Baa2

Moody's Investors Service said it assigned a Baa2 rating to ProAssurance Corp.'s $250 million of 10-year senior notes. The outlook is stable.

Proceeds are expected to be used for general corporate purposes, repayment of debt and other capital management activities.

The agency said ProAssurance's ratings reflect the company's established track record and solid competitive market position as a specialist underwriter of medical professional liability insurance in the United States, strong operating profitability and claim-handling discipline, high-quality investment portfolio, conservative operational leverage profile and sound reserve position.

In Moody's view, these strengths are tempered by the company's well above-average product risk given that medical professional liability insurance has exhibited over time one of the highest levels of volatility in underwriting results and loss cost trends among all insurance lines of business, a continued low interest rate environment and an active acquisition strategy outside of the company's core competencies.

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