ProAssurance to buy medical professional liability insurer NORCAL for $450m
ProAssurance acquisition of NORCAL Group : Alabama-based property and casualty company ProAssurance has signed a $450 million to acquire NORCAL Group, a provider of medical professional liability insurance.
As per the latest insurance acquisition news, ProAssurance is aiming to create the third largest medical professional liability insurance carrier in the US through the merger.
The NORCAL Group of companies also offer risk management solutions and provider wellness resources to physicians, medical groups, healthcare extenders, hospitals, allied healthcare facilities, and community clinics in the US.
On the other hand, ProAssurance offers healthcare professional liability, legal professional liability, workers’ compensation insurance, apart from serving medical technology and life sciences firms with products liability.
ProAssurance claims to cater to 54,000 plus healthcare providers across 49 states in the US. As of 30 September 2019, ProAssurance had annualized medical professional liability gross written premium of around $475 million and assets of over $4.8 billion.
Ned Rand – President and CEO of ProAssurance, commenting on ProAssurance acquisition of NORCAL Group, said: “Bringing together these two great organizations provides ProAssurance and NORCAL Group with a transformational opportunity to enhance the services we can deliver to our customers and distribution partners, while creating significant long-term value for ProAssurance shareholders.
“Much like the predecessors to ProAssurance, NORCAL was founded by physicians in the 1970s to serve the professional liability insurance needs of physicians. NORCAL Group’s history and physician-focused culture make it a perfect fit for the ProAssurance family.”
The board of directors of NORCAL Group has concluded that the deal is in the best interests of the group’s policyholders and has approved it and recommended policyholders to vote in its favor.
The acquisition is not subject to ProAssurance’s shareholder approval.
ProAssurance acquisition of NORCAL Group , a provider of medical professional liability insurance. Photo courtesy of Dr. Manuel González Reyes from Pixabay.
Commenting on ProAssurance acquisition of NORCAL Group, Scott Diener – President and CEO of NORCAL Group, said: “Given today’s challenging healthcare environment, both organizations will benefit significantly from the formation of this enhanced company.
“Combining with ProAssurance brings tremendous strategic value to NORCAL through increased financial strength, access to new and innovative products for policyholders, and the increased scale of our core services and data analytics. The completion of this transaction will enhance and expand NORCAL’s ability to serve its customers in the highly competitive MPL industry as we strive to carry out our mission.
“ProAssurance is the perfect partner for us. They serve as a strong advocate of doctors. Importantly, in addition to the strength and stability they bring to our policyholders, they also offer a proven track record of successful integrations for our employees.”
The closing of ProAssurance acquisition of NORCAL Group is subject to regulatory approval and other customary conditions, and is expected to occur by the end of the year.