ProAssurance Corp. (NYSE: PRA) announced that Independent Nevada Doctors Insurance Exchange, a Nevada reciprocal exchange, will become part of ProAssurance through a conversion from a reciprocal to a stock insurance company and simultaneous merger with a ProAssurance subsidiary.
The transaction is expected to close before the end of 2012. Proceeds from the transaction will be paid to eligible IND subscribing policyholders.
IND is a writer of medical professional liability insurance in Nevada, and ProAssurance is one of the largest MPL writers in Nevada.
The Nevada operations of both companies will be combined into IND’s Las Vegas office under the leadership of IND President James Hooban.
The sponsored conversion will convert IND into a non-public stock company. IND will be merged with a subsidiary of ProAssurance and ProAssurance will pay cash to eligible subscribers to purchase the IND stock.
The Board of Directors of ProAssurance and the SAC for IND have approved the transaction, which now requires that the SAC adopt a Plan of Conversion (Plan) to fulfill the requirements of the transaction. The Plan and the transaction require approvals from IND subscribers and the Nevada Division of Insurance.
ProAssurance’s legal advisor in the transaction is Burr & Forman, LLP. The financial advisor for IND is Keefe, Bruyette & Woods and IND’s legal advisor is Edwards Wildman Palmer LLP.
ProAssurance is rated “A” (Strong) by Fitch Ratings; ProAssurance Group is rated “A” (Excellent) by A.M. Best.