The Doctors Company has announced an agreement to acquire ProAssurance Corp. for $1.3 billion, a move that will take the specialty insurer private. The Doctors Company, the largest physician-owned medical malpractice insurer in the nation, disclosed the deal, which is expected to close in the first half of 2026. ProAssurance, based in Birmingham, Alabama, specializes in medical liability, products liability for medical technology and life sciences, and workers’ compensation insurance.
Upon completion of the acquisition, ProAssurance’s common stock will be delisted from the New York Stock Exchange. ProAssurance will then operate as a wholly owned subsidiary of The Doctors Company. The combined company is projected to possess assets of approximately $12 billion.
According to AM Best, The Doctors Company Insurance Group is the second-largest writer of medical professional liability (MPL) insurance in the U.S. based on 2023 direct premiums written. ProAssurance ranks fourth. Berkshire Hathaway holds the leading position with over 18% of the market share. With the addition of ProAssurance, The Doctors Company would control nearly 16% of the MPL market. AM Best indicated that it doesn’t anticipate the transaction impacting The Doctors Company’s financial strength rating of A (Excellent). ProAssurance’s A (Excellent) financial strength rating will also remain unchanged, the agency said.
Under the terms of the agreement, ProAssurance shareholders will receive $25.00 in cash per share. This represents a premium of approximately 60% over the closing price per share of ProAssurance common stock on March 18, the trading day prior to the deal’s announcement on March 19. ProAssurance’s Board of Directors unanimously approved the deal and will recommend that shareholders do the same.
Richard E. Anderson, chairman and CEO of The Doctors Company, stated, “Healthcare is a team sport, and the teams are getting larger. In order to provide them the best imaginable service requires a mission-based company with nationwide scale, resources, and dedication to all medical professions and healthcare providers. The addition of ProAssurance to The Doctors Co. significantly enhances our ability to serve healthcare professionals now and well into the future.”
Ned Rand, ProAssurance’s president and CEO, added, “Both ProAssurance and The Doctors Co. were founded by physicians in response to the medical liability crisis of the 1970s. This shared history has helped both companies fulfill our shared mission to protect others and given us similar operating philosophies and cultures. Bringing the strengths and capabilities of our companies together now will allow our teams to continue to serve today’s healthcare providers with the necessary scale and breadth of capabilities.”
In a May 2024 report on the MPL market, AM Best highlighted that insurers in this sector are still facing ongoing challenges. These include an increase in high-severity losses due to social inflation factors, as well as issues like staffing shortages, growth in alternative care facilities, and the erosion of tort reform in some jurisdictions.
