A.M. Best Affirms ProAssurance’s Excellent Rating

July 9, 2003

A. M. Best has affirmed the “A-” (Excellent) Financial Strength Rating of Alabama-based ProAssurance Corporation and its insurance subsidiaries. Best upgraded the Financial Strength Rating outlook to Stable.

In a separate action, Best has assigned a Debt Rating of “BBB-” to the $100 million of 3.90 percent Convertible Senior Debentures issued by ProAssurance last week. The “BBB-” rating applies only to the debentures and is separate from the Financial Strength Rating, which addresses the ability of ProAssurance and its insurance subsidiaries to meet current obligations to policyholders.

In rating ProAssurance’s Financial Strength, Best noted the group’s operating profitability, adequate capitalization, aggressive defense of claims, and geographic diversification. Also contributing to the affirmation is the company’s ability to access the capital markets to support premium growth.

Best also highlighted the diversification and profitability brought to the group by MEEMIC Insurance Company, the now wholly-owned personal lines subsidiary of ProAssurance.

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