ProAssurance Corp., based in Birmingham, is set to be acquired by The Doctors Company, the nation’s largest physician-owned medical malpractice insurer, in a deal valued at $1.3 billion. The acquisition, expected to close in early next year, will result in a combined entity with assets totaling $12 billion.
According to recent Securities and Exchange Commission filings, the deal is not anticipated to lead to immediate staffing changes. Most employees will retain their positions without needing to interview, although severance packages will be available if positions are eliminated within the first year following the transaction’s completion. These packages will include credit for years of service with ProAssurance.
The Doctors Company is a subsidiary of TDC Group, which boasts annual revenue of $1.5 billion and over $8 billion in assets. TDC Group is recognized as the nation’s largest physician-owned provider of insurance and risk management solutions.
ProAssurance CEO Ned Rand stated, “This transaction will deliver significant value to our shareholders.” Rand highlighted the shared history and mission between ProAssurance and The Doctors Company, both founded by physicians in response to the medical liability crisis of the 1970s. “Both companies have grown by bringing together other physician-founded companies, fulfilling our shared mission to protect others and reflecting similar operating philosophies and cultures,” Rand added.
