AM Best Removes From Under Review with Positive Implications, Upgrades Credit Ratings of MDAdvantage Insurance Co. of New Jersey
January 24, 2023by
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 Co. of New Jersey (MDAdvantage) (Lawrenceville, NJ).
The outlook assigned to these Credit 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 Co. The ratings action reflects the completed acquisition effective Jan. 1, 2023, and MDAdvantage’s inclusion as a member company under the MAG Mutual Holding Co. 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.