These rating actions are based on the announcement that a definitive agreement has been reached for the purchase of MEEMIC by Auto Club Insurance Association (Dearborn, MI), the lead member of The Auto Club Group, from Motors Insurance Corporation (Southfield, MI), the lead member of GMAC Insurance Group (GMACI).
The positive implications reflect the likely positive impact on MEEMIC from its future parent, which is a higher rated organization.
84 per diluted share, and the MEEMIC
sale resulted in $109.
will be accounted for as discontinued operations when ProAssurance reports 2005 results.
The Cautions stated above also apply to ProAssurance's previously announced transaction in which we expect to sell our personal lines subsidiary, MEEMIC
Insurance Company and its internal agency to Motors Insurance Corporation, a subsidiary of GMAC Insurance Holdings, Inc.
The number of homeowners' policies sold by MEEMIC has also been a factor in that growth.
Best assigns a rating of "A-" (Excellent) to ProAssurance, MEEMIC and our principal professional liability subsidiaries, except NCRIC, Inc.
He explained, "We believe the future of the personal lines business will belong to those companies that can deliver the personal service MEEMIC is known for, while achieving the kind of scale needed to succeed in an increasingly competitive marketplace.
We anticipate that, following completion of the transaction, MEEMIC will continue operations from its Auburn Hills, Michigan offices, with its existing staff and management, including President Lynn Kalinowski and Chief Financial Officer Christine Schmitt.
These rating actions follow ProAssurance Corporation's (ProAssurance) (NYSE: PRA) (Birmingham, AL) announcement that it entered into a definitive agreement to sell MEEMIC
to Motors Insurance Corporation, a member of GMAC Insurance Group (GMACI).
Fitch favorably notes that MEEMIC
was a rare diversification success story in the medical malpractice insurance market as MEEMIC
's operating performance provided more consistent profitability compared with PRA's more volatile historical medical malpractice results.
Best assigns a rating of "A-" (Excellent) to the ProAssurance Group, MEEMIC
and our principal professional liability subsidiaries, except NCRIC, Inc.