AM Best Places Credit Ratings of MDAdvantage Insurance Company of New Jersey Under Review With Positive Implications

·3 min read

OLDWICK, N.J., August 16, 2022--(BUSINESS WIRE)--AM Best has placed under review with positive implications the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of "a-" (Excellent) of MDAdvantage Insurance Company of New Jersey (MDAdvantage) (Lawrenceville, NJ).

MDAdvantage Holdings, Inc. and MAG Mutual Insurance Company (MAG Mutual), one of the largest mutual insurers of physicians in the United States, have reached an agreement for MAG Mutual to acquire MDAdvantage. MAG Mutual has a Financial Strength Rating of A (Excellent) and a Long-Term Issuer Credit Rating of "a+" (Excellent). The acquisition is subject to regulatory approval from the N.J. Department of Banking and Insurance and approval by MDAdvantage Holdings, Inc. shareholders. The transaction is expected to close before the end of 2022, following the shareholder vote and regulatory approvals.

MAG Mutual has been a leading provider of medical professional liability insurance for more than four decades, delivering comprehensive coverage for practice, business and regulation of medicine to more than 30,000 health care providers and organizations nationwide.

MDAdvantage is a leading medical professional liability insurance company that is committed to supporting physician initiatives that increase patient safety, educate the health care community and invest in the future of the health care system.

MDAdvantage plans to continue to operate under its current name and maintain the company’s presence in New Jersey, serving as an important hub for MAG Mutual in the Northeast.

The ratings of MDAdvantage are expected to benefit from inclusion into the broader MAG Mutual organization and product offerings, and the synergies and greater financial strength of MAG Mutual.

This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best's Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

Copyright © 2022 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

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Contacts

Edward J. Zonenberg
Senior Financial Analyst
+1 908 439 2200, ext. 5135
edward.zonenberg@ambest.com

Vicky Riggs
Associate Director
+1 908 439 2200, ext. 5039
vicky.riggs@ambest.com

Christopher Sharkey
Manager, Public Relations
+1 908 439 2200, ext. 5159
christopher.sharkey@ambest.com

Jeff Mango
Managing Director,
Strategy & Communications
+1 908 439 2200, ext. 5204
jeffrey.mango@ambest.com