Coverys Finalizes Acquisition of Preferred Professional Insurance Company
Expanding Medical Professional Liability Presence Nationally
Boston, MA - August 4, 2014 - On August 1, 2014, Medical Professional Mutual Insurance Company (“ProMutual”), a Coverys company, finalized the acquisition of Preferred Professional Insurance Company® (“PPIC®”), located in Omaha, Nebraska. PPIC was formerly owned by 18 Catholic healthcare systems, 7 of which are in the top 25 largest nonprofit hospital systems in the entire United States. The transaction had previously received unanimous shareholder support before regulatory approval was obtained.
Through the acquisition of PPIC, Coverys will expand its presence across the country and as a leading medical professional liability insurer in the United States. The acquisition also supports its strategy to broaden delivery of innovative products and services within the medical professional liability insurance marketplace on a national basis.
“Coverys shares PPIC’s long-standing commitment to our policyholders. We are pleased that this acquisition will allow us to offer our policyholders access to the enhanced services and products for which Coverys is recognized as well as its financial strength and stability,” said Lynnette Matza, CEO and president of PPIC.
“We view the acquisition of PPIC as a critical pivot point in our growth strategy providing additional scale on a national level in our marketplace,” said Gregg L. Hanson, CEO and president of Coverys. “We are excited to finalize the acquisition of PPIC and to have its dedicated staff join the Coverys team.”
Sherman & Company LLC acted as financial advisor and Skadden, Arps, Slate, Meagher & Flom LLP served as legal advisor for Coverys. Raymond James acted as financial advisor and Kutak Rock LLP served as legal advisor to PPIC.
For more information about Coverys, contact Loren LeVasseur, public relations specialist, at (617) 946-8665 or firstname.lastname@example.org.
Coverys is the eighth largest medical professional liability insurance provider in the country based on direct written premium. Coverys member companies insure more than 25,000 physicians, dentists, and allied healthcare providers, as well as more than 500 hospitals, health centers and clinics in 27 states from coast to coast. Coverys has net admitted assets of $3.4 billion and direct written premium of $363 million as of December 31, 2013. In addition, Coverys member insurance companies Medical Professional Mutual Insurance Company (“ProMutual”) and ProSelect Insurance Company, as well as ProMutual-sponsored Coverys RRG, Inc. have a Best’s Rating of A (Excellent). MHA Insurance Company and Washington Casualty Company have a Best’s Rating of A- (Excellent).
Coverys emphasizes physician education and patient safety, and the company is acknowledged as a leader in providing supportive risk management services and resolute claim defense to the healthcare community. For more information visit Coverys at www.coverys.com.
PPIC is an A.M. Best Rated A- (Excellent) financially strong company, previously owned by a group of Catholic health systems which represents over 600 acute care facilities, 300 long term care facilities, and employs thousands of healthcare providers. Admitted to write insurance in all 50 states and the District of Columbia, PPIC insures over 8,000 healthcare providers nationwide.
About Preferred Professional Insurance Company
PPIC has two goals: to be a permanent and financially stable source of professional liability insurance for physicians and other healthcare providers and an innovative resource for education, risk management and related consultative services.