Massachusetts-based medical liability insurance company Medical Professional Mutual Insurance Co., known as ProMutual, will acquire medical liability insurer and risk management company FinCor and its subsidiaries.
ProMutual, a member of ProMutual Group, said it is is acquiring Lansing, Michigan, based FinCor and its five subsidiaries – MHA Insurance company (MHAIC), Washington Casualty Co. (WCC), FinCor Solutions, Inc., Risk Management and Patient Safety Institute, Inc. (RM&PSI), and Capital Risk Solutions SPC.
Shareholders will receive cash totaling $164 million at close, with two potential additional cash payments which will be determined by future developments and could total in the range of $0 to $73 million, according to the announcement.
The transaction is expected to close by the end of the third quarter of this year, after shareholder and regulatory approvals.
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Through its MHAIC and WCC subsidiaries, FinCor is one of the leading providers of medical liability insurance in the Midwest and Pacific Northwest, insuring more than 250 hospitals and healthcare
facilities and 5,000 physicians in 11 states.
RM&PSI provides clinical risk management education and designs patient safety programs for healthcare institutions.
For ProMutual Group, one of the top 10 medical liability insurance providers in the country, and one of the largest in the Northeast, the acquisition reflects the organization’s focus on expanding its
service footprint both organically and through acquisition,according to Richard W. Brewer, president and CEO of ProMutual Group.
“The synergies represented in this transaction are substantial. The companies have no geographic redundancy, and both bring specialized underwriting strength and clinical risk management
experience to their respective markets,” said Brewer.
ProMutual said that it intends to preserve the FinCor-affiliate brands and operate FinCor as an independent subsidiary of ProMutual. It also plans to retain FinCor’s employees.
ProMutual Group reports it has in excess of $2.2 billion in net admitted assets, more than $600 million in policyholder surplus and over $300 million in direct written premium in 2008. Based in Massachusetts, ProMutual Group member companies operate in Connecticut, Maine, Massachusetts, New Hampshire, New Jersey, Pennsylvania, Rhode Island and Vermont. Member company ProSelect Insurance Co. also recently became licensed in Virginia. ProMutual Group distributes its products through independent agents.
In 2008, FinCor reported annual revenues of $97.2 million, and $17 million in net income which represented an increase of 12 percent over 2007 net income.
Topics Mergers & Acquisitions Carriers Massachusetts Michigan Risk Management Medical Professional Liability
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