MMIC, a large Midwest medical professional liability firm, has entered into an agreement to acquire Utah Medical Insurance Association, a provider of medical professional liability insurance for physicians in Utah, Montana, Idaho, and Wyoming.
After the acquisition, UMIA will become a wholly-owned subsidiary of MMIC, but will retain its brand and board of directors. Terms of the deal were not disclosed.
Following the transaction, the combined companies will have nearly 20,000 policyholders in 14 states. The organizations will serve the entire health care spectrum: physicians, large hospitals and health systems, clinics, and outpatient and long-term care facilities.
In connection with UMIA’s transaction with The Doctors Co. announced in October, UMIA had a short period in which it could consider other bids. MMIC emerged with a superior bid and was notified on Jan. 30 of the board’s unanimous decision to proceed with MMIC and recommend that UMIA’s policyholders approve the transaction.
The transaction is expected to close in the first half of 2013 and is subject to customary due diligence, regulatory approvals and UMIA policyholder approval. UMIA will provide its policyholders with a proxy statement in connection with seeking their approval of the proposed merger.
UMIA is an Oregon reciprocal insurance company with its principal administrative offices in Salt Lake City, Utah. As a reciprocal insurance company, it is managed by USMA Insurance Management Co., its attorney-in-fact.
Minneapolis, Minn.-based MMIC’s clients include small practices, hospitals, outpatient and long-term care facilities. Willis Capital Markets & Advisory acted as financial advisor to MMIC.