Birmingham-based ProAssurance Corp., which provides medical liability and other insurance, is being acquired by The Doctors Company, a California-based medical malpractice insurer.
ProAssurance stockholders will receive $25 per share. The stock is trading this morning at just over $23 per share.
The cash transaction is valued at about $1.3 billion.
“This transaction will deliver significant value to our shareholders,” said Ned Rand, ProAssurance’s president and CEO. “Both ProAssurance and The Doctors Company were founded by physicians in response to the medical liability crisis of the 1970s. Both companies have grown over the years by bringing together other physician-founded companies. 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 health care providers with the necessary scale and breadth of capabilities.”
Doctors Company Chairman and CEO Richard E. Anderson, said, “We are excited to further our mission to advance, protect, and reward the practice of good medicine to an even greater number of health care providers across the nation. Health care 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 health care providers. The addition of ProAssurance to The Doctors Company significantly enhances our ability to serve healthcare professionals now and well into the future.”
The board of ProAssurance has approved the transaction, which still requires regulatory approvals. It is expected to close in the first half of 2025, after which ProAssurance will no longer be listed on the New York Stock Exchange.
