OLDWICK, N.J.--(BUSINESS WIRE)--AM Best has removed from under review with positive implications and upgraded the Financial Strength Rating to A (Excellent) from A- (Excellent) and the Long-Term Issuer Credit Rating to “a+” (Excellent) from “a-” (Excellent) of MDAdvantage Insurance Company of New Jersey (MDAdvantage) (Lawrenceville, NJ). The outlook assigned to these Credit Ratings (ratings) is stable.
The ratings of MDAdvantage were previously placed under review with positive implications in August 2022, following the announcement that it had entered into a definitive agreement to be acquired by MAG Mutual Insurance Company. The ratings action reflects the completed acquisition effective Jan. 1, 2023 and MDAdvantage’s inclusion as a member company under the MAG Mutual Holding Company (MAG Mutual) rating unit, which has a consolidated balance sheet strength level of strongest, as well as adequate operating performance, a neutral business profile and appropriate enterprise risk management.
MDAdvantage is considered part of the MAG Mutual rating unit based on operational support, strategic importance to the group’s strategy and explicit support provided through an intercompany reinsurance pooling agreement. MDAdvantage is fully owned by MAG Mutual and the parent maintains full management control for the company.
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