|[February 07, 2013]
A.M. Best Comments on MMIC Insurance, Inc.'s Acquisition of Utah Medical Insurance Association
OLDWICK, N.J. --(Business Wire)--
A.M. Best Co. has commented that the financial strength rating
(FSR) of A (Excellent) and issuer credit rating (ICR) of "a" of MMIC
Insurance, Inc. (MMIC) (Minneapolis, MN) are unchanged following its
February 5, 2013 announcement that it has entered into an agreement to
acquire Utah Medical Insurance Association (UMIA) (Salt Lake
City, UT). Additionally, the FSR of A- (Excellent) and ICR of "a-" of
UMIA are unchanged. The outlook for all ratings is stable.
After the acquisition, UMIA will become a wholly-owned subsidiary of
MMIC. The transaction will extend MMIC's geographic footprint from the
Upper Midwest into the Mountain region of the United States.
A.M. Best expects that MMIC will maintain favorable risk-adjusted
capitalization ad continue to generate operating profits through
synergies gained as the parent of UMIA. Furthermore, UMIA will benefit
from the acquisition by being part of a larger, better capitalized
entity while broadening its access to products and services.
The transaction is expected to close in the first half of 2013, subject
to customary due diligence, regulatory approvals as well as UMIA
The methodology used in determining these ratings is Best's Credit
Rating Methodology, which provides a comprehensive explanation of A.M.
Best's rating process and contains the different rating criteria
employed in the rating process. Best's Credit Rating Methodology can be
found at www.ambest.com/ratings/methodology.
Founded in 1899, A.M. Best Company is the world's oldest and most
authoritative insurance rating and information source. For more
information, visit www.ambest.com.
Copyright © 2013 by A.M. Best Company, Inc. ALL RIGHTS
[ Back To Insurance Technology's Homepage ]