Jacksonville, Florida-based medical liability insurer FPIC Insurance Group Inc. will acquire Advocate, MD Financial Group Inc. of Austin, Texas for $33.6 million.
The deal includes additional considerations of up to $12 million based on Advocate, MD’s future financial performance.
Advocate, MD is the fourth largest provider of medical professional liability insurance in Texas and also writes the coverage in Mississippi.
The company wrote $25.4 million in premiums in 2008. FPIC said it intends to operate Advocate, MD as an independent subsidiary with its current management team and operations in Austin.
“This transaction provides meaningful benefits to both organizations and is consistent with our long-term business strategy,” said John R. Byers, FPIC’s president and chief executive officer. “Advocate, MD has established itself as an innovative company with an unwavering focus on serving the medical professional liability insurance needs of healthcare practitioners in Texas and Mississippi. As an ongoing part of our organization, Advocate, MD will continue to serve these markets with the same high degree of service and commitment.”
The transaction must be approved by the companies’ directors, as well as Texas Insurance Commissioner and shareholders of Advocate, MD. The transaction is expected to close prior to the end of the year.
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