Georgia’s MagMutual to Acquire New Jersey-Based MDAdvantage Insurance

MagMutual Insurance Co. and MDAdvantage Holdings Inc. have reached an agreement for MagMutual, headquartered in Atlanta, to acquire MDAdvantage Insurance Co., based in New Jersey.

MDAdvantage, according to AM Best, is one of the top three providers of medical professional liability insurance in New Jersey. It also writes in nine additional East Coast states from West Virginia to Massachusetts.

MDAdvantage will continue to operate under its current name and maintain its presence in New Jersey, serving as an important hub for MagMutual in the Northeast.

According to S&P Global Market Intelligence, MagMutual is the largest mutual insurer of physicians and the second largest mutual medical professional liability provider in the U.S., serving more than 30,000 healthcare providers and organizations nationwide.

MagMutual will finance the acquisition with existing cash resources.

According to ratings analysts at AM Best, MagMutual’s “adequate operating performance, neutral business profile and appropriate enterprise risk management assessments” are not expected to be impacted by the transaction. AM Best said it is not making any changes to its credit ratings of MagMutual and its subsidiary, Professional Security Insurance Co. of Scottsdale, Arizona, collectively referred to as MAG Mutual, as a result of the announcement.

AM Best has placed under review with positive implications the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of “a-” (Excellent) of MDAdvantage Insurance Co. of New Jersey.

The acquisition is subject to regulatory approval from the New Jersey Department of Banking and Insurance and approval of MDAdvantage Holdings shareholders.

Topics Mergers & Acquisitions Georgia New Jersey