Boston-based Medical Professional Mutual Insurance Co. (ProMutual), a Coverys company, said it has finalized the previously-announced acquisition of Preferred Professional Insurance Co. (PPIC), located in Omaha, Nebraska.
PPIC was formerly owned by 18 Catholic healthcare systems, seven of which are in the top 25 largest nonprofit hospital systems in the entire United States. The transaction had previously received unanimous shareholder support before regulatory approval was obtained.
Through the acquisition of PPIC, Coverys will expand its presence across the country in the medical professional liability field.
“We view the acquisition of PPIC as a critical pivot point in our growth strategy providing additional scale on a national level in our marketplace,” said Gregg L. Hanson, CEO and president of Coverys.
Coverys is the eighth largest medical professional liability insurance provider in the country based on direct written premium. Coverys member companies insure medical providers in 27 states. Coverys had net admitted assets of $3.4 billion and direct written premium of $363 million as of December 31, 2013.
Coverys member insurance companies include ProMutal and ProSelect Insurance Co., as well as ProMutual-sponsored Coverys RRG Inc., MHA Insurance Co. and Washington Casualty Co.
Sherman & Company LLC acted as financial advisor and Skadden, Arps, Slate, Meagher & Flom LLP served as legal advisor for Coverys. Raymond James acted as financial advisor and Kutak Rock LLP served as legal advisor to PPIC.