Coverys, a medical professional liability insurer, and Global Insurance Management Company, Inc. (GIMC), a provider of medical professional liability insurance for physicians and other healthcare providers, have entered into a definitive merger agreement pursuant to which Coverys’ ProMutual Group, Inc. will acquire GIMC.
GIMC, based in Plantation, Fla., and the predecessors to its insurance subsidiary, Healthcare Underwriters Group, Inc., were founded by physicians and insurance professionals in 2003 to bring long-term availability, predictability and stability to the marketplace in Florida, Ohio and Kentucky.
Since that time, GIMC has expanded to Texas, Indiana and Nevada. Coverys continues to expand its delivery of products and services to meet the demands of the changing healthcare market.
Gregg L. Hanson, CEO and president of Coverys, said the combination of the two companies will provide Coverys the opportunity to further expand its footprint into Florida and Kentucky as well as increase its market share in Ohio.
Joshua Salman, CEO and president of GIMC, said policyholders will benefit from this acquisition by being a part of a larger healthcare professional liability group with a greater level of financial stability and greater access to enhanced products and services, and the ability to issue policies in all 50 states.
The Board of Directors of GIMC has unanimously approved the transaction and has resolved to recommend that its shareholders approve the merger agreement. The transaction is expected to close in the fourth quarter of 2017 and is subject to customary closing conditions, including the receipt of regulatory approvals and approval by the holders of a majority of the outstanding shares of GIMC common stock.
Coverys’ parent company, Medical Professional Mutual Insurance Company, and its active underwriting insurance subsidiaries are rated A (Excellent) with AM Best.
GIMC is a Florida-based management company that provides organizing, licensing and complete management services for Healthcare Underwriters Group, including underwriting, financial, investment, claims management, HR/operations, payroll & benefits, sales, risk management and marketing services.
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