Berkshire Hathaway to Buy N.J.-based Princeton Insurance

Berkshire Hathaway’s medical professional liability insurance unit, Medical Protective Co., is purchasing New Jersey-based Princeton Insurance Co., a professional liability insurer for healthcare providers.

Princeton Insurance was previously owned by Medical Liability Mutual Insurance Co., a New York-based professional liability insurance provider. The acquisition, which is subject to customary closing conditions and regulatory approvals, is expected to close in the fourth quarter of 2011.

Based in Princeton, New Jersey, Princeton Insurance employs more than 100 people and serves 13,000 healthcare providers; it has annualized gross written premiums of $140 million and surplus at second quarter-end of $400 million. Princeton’s principal operations would remain in Princeton.

Medical Protective, which itself was acquired by Berkshire Hathaway back in 2005, offers primary medical professional liability coverage and risk solutions for healthcare providers, including physicians, dentists, chiropractors, optometrists, podiatrists, other healthcare professionals, hospitals, and other healthcare facilities. Medical Protective reports some $700 million in annual premium.