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New Jersey Insurance Company MDAdvantage’s AM Best Places Credit Scores Under Review With Positive Implications

By on August 16, 2022 0

OLDWICK, NJ–(BUSINESS WIRE)–AM Best placed under review with positive implications the financial strength rating of A- (Excellent) and the issuer’s long-term 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 physician insurance mutuals in the United States, have entered into an agreement allowing 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 NJ Department of Banking and Insurance and shareholder approval from MDAdvantage Holdings, Inc. The transaction is expected to close before the end of 2022, following shareholder vote and regulatory approvals.

MAG Mutual has been a leading provider of medical malpractice insurance for over four decades, providing comprehensive cover for the practice, business and regulation of medicine to over 30,000 healthcare providers and organizations across national scale.

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

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

MDAdvantage ratings should benefit from the inclusion in the wider MAG Mutual organization and product offerings, as well as synergies and greater financial strength from MAG Mutual.

This press release relates to credit ratings that have been published on AM Best’s website. For all ratings information relating to the release and relevant disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Assessment Activity Web page. For more information on the use and limitations of credit rating opinions, please see Best Credit Score Guide. For more information on the proper use of Best’s Credit Scores, Best’s Performance Ratings, Best’s Preliminary Credit Ratings, and AM Best’s press releases, please see Guide to Proper Use of Best’s Ratings and Reviews.

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 more than 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

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