Business Moves

FPIC, The Doctors Co.

One of Florida’s major medical malpractice insurers is seeking state approval to be sold to an out-of-state insurance group with the initial price tag expected to total $365 million. The Florida Office of Insurance Regulation has scheduled a public hearing on the deal later this week.

FPIC Insurance Group, one of Florida’s largest providers of physicians and surgeons medical professional liability groups in Florida has announced it will be selling to the California based-The Doctors Co. for $42.000 per share, representing an aggregate price of some $362 million. The $42 figure includes a premium of roughly 11 percent over the $31.10 per share price based on May 23, the last trading day before the deal was announced.

The Doctors Co. was founded by doctors in 1976 and is the nation’s largest insurer of physician and surgeon medical professional liability with nearly 55,000 member physicians, $4 billion assets, and “A” rating by Fitch Ratings and an A- rating by A.M. Best.

Fidelity National

Title insurer Fidelity National Financial Inc. has sold its flood insurance operations to WRM America Holdings LLC. Under the agreement, WRM America of Uniondale, New York, will acquire 100 percent of the equity interests of Fidelity National Indemnity Insurance Co. and Fidelity National Insurance Services for $210 million.

The closing of the transaction is expected during the fourth quarter of 2011. The sale is expected to result in a $154 million pre-tax gain for FNF.

FNF Chairman William P. Foley II said the company has been the largest flood insurance provider and it has been “very profitable and consistent” for nearly 10 years but the sale represented an opportunity to realize the value of the business.

WRM Holdings was formed in 2008 by Wright Risk Management, a risk financing and insurance management company, and Aquiline Capital Partners to serve the education market, with plans to grow into the not-for-profit and municipal markets nationally. Wright Risk Management manages several New York reciprocals.

Aon, Ward Financial

Aon Corp. has acquired Westfield Financial Corp. and its subsidiary, the Ward Financial Group, from Ohio Farmers Insurance Co. Aon said that Ward would be integrated with Aon’s McLagan Partners, its own benchmarking firm. Terms were not disclosed. Ward provides benchmarking and best practices research studies for insurance companies. It is known for its Ward’s 50, for which it identifies the top-performing insurers in various industry segments.

Topics Florida Aon