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

OLDWICK, N.J.--(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.

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