NCRIC Group Inc. and ProAssurance Corporation jointly announced that NCRIC’s shareholders have approved NCRIC’s merger into ProAssurance. The approval came at Tuesday’s special meeting of shareholders in which an overwhelming majority of votes cast were reportedly in favor of the transaction.
NCRIC’s merger into ProAssurance is expected to be declared effective upon the close of business on Aug. 3, 2005. Each share of NCRIC common stock will be converted into 0.25 shares of ProAssurance common stock automatically at the effective time of the merger. NCRIC expects to delist its stock on NASDAQ at that time.
Holders of NCRIC shares may begin trading their converted shares as ProAssurance common stock on the NYSE on Aug. 4, 2005, the day following the expected effective time of the merger. Record holders of NCRIC common stock will receive instructions for exchanging their certificates of NCRIC common stock for certificates of ProAssurance common stock within the next few days.
ProAssurance’s Chairman and CEO, A. Derrill Crowe, M.D., stated, “The NCRIC transaction is an important step for us because of its strategic fit in our organization. NCRIC is a well-established organization that offers us significant penetration in Washington, D.C., Delaware and Virginia, and brings an established core of insurance professionals into our company. As we complete this transaction, we believe ProAssurance is stronger and better positioned to serve our customers than ever before.”
With the completion of the transaction, ProAssurance will have $3.3 billion in assets and will serve policyholders in 22 states and the District of Columbia. NCRIC Inc., NCRIC Group’s insurance subsidiary, will continue to service the mid-Atlantic region as a wholly owned subsidiary of ProAssurance Corporation and will operate out of NCRIC’s Washington, D.C. office.
In addition to its headquarters in Washington, D.C., NCRIC has offices in Wilmington, Delaware; Greensboro, North Carolina; Richmond and Lynchburg, Virginia; and Charleston, West Virginia. NCRIC provides services to more than 4,600 physician clients.
ProAssurance is a specialty insurer with more than $3.2 billion in assets and $790 million in gross written premiums in 2004. As the nation’s fourth largest writer of medical professional liability insurance, ProAssurance’s principal professional liability subsidiaries, The Medical Assurance Company Inc., ProNational Insurance Company, and Red Mountain Casualty Insurance Company, Inc., are providers in developing solutions which serve the needs of the evolving healthcare industry. ProAssurance is the 10th largest writer of personal auto coverage in Michigan through its subsidiary, MEEMIC Insurance Company.
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