Fitch affirms ProAssurance

Fitch Ratings said it affirmed ProAssurance Corp.'s BBB issuer default rating and BBB- unsecured convertible debt rating.

The outlook is stable.

The agency said ProAssurance's ratings are based on the solid financial condition of its operating subsidiaries, consistent profitability, financial and operating flexibility and highly experienced management team. PRA has an established reputation for providing quality service and expertise in risk management as well as a strong track record of aggressively defending non-meritorious claims, which enhances customer loyalty and reduces fraud.

Partially offsetting these positives is the potential volatility the company is exposed to as a monoline company that operates in one of the industry's most unpredictable lines of business, the agency said. Further, Fitch believes that pricing in the medical malpractice market has peaked, creating a more competitive operating environment with top-line pressure.

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