Coverys Announces Agreement to Acquire Preferred Professional Insurance Company
Boston, MA - May 12, 2014 - Medical Professional Mutual Insurance Company (“ProMutual”), a Coverys member company, announced today that it has entered into an agreement to acquire Preferred Professional Insurance Company (“PPIC”), located in Omaha, Nebraska.
Coverys is the eighth largest medical professional liability provider in the country based on direct written premium and provides medical professional liability insurance protection to physicians, hospitals, dentists and other healthcare providers in 26 states coast to coast. PPIC supports Catholic healthcare systems across the country by providing professional liability insurance, other casualty coverages, and an array of risk transfer products and services.
Coverys’ agreement to acquire PPIC is a continuation of a strategic plan in which Coverys will expand its delivery of innovative products and services within the professional liability insurance marketplace. Both companies display financial strength and longevity in the marketplace, provide dynamic risk management resources, and are on the forefront of patient safety and physician education.
“PPIC brings a wealth of knowledge and experience to the professional liability marketplace. This acquisition provides Coverys the opportunity to offer enhanced products and services and to enter specialty markets to reach providers who may not have access to similar products within their current insurance program,” said Gregg L. Hanson, CEO and president of Coverys.
“PPIC policyholders will benefit from this acquisition by being a part of a larger healthcare professional liability group, having a greater level of financial stability, and having access to enhanced products and services,” said Lynnette Matza, CEO and president of PPIC.
“PPIC’s notable specialized risk management programs, healthcare provider education programs and claims management has made them a well-respected organization within the medical professional liability insurance industry. Coverys is committed to continuing and expanding the services currently offered to PPIC policyholders to meet the needs of these entities for captive services,” said Brenda E. Richardson, M.D., chair of the board for Coverys.
“Coverys and PPIC have similar core values and are dedicated to providing viable resources to existing and new policyholders. I am confident that our policyholders’ access to innovative and high quality insurance and services will continue,” said Ted Schlert, chair of the board for PPIC.
The closing of the acquisition is subject to approval by a vote of PPIC shareholders scheduled for June 11, 2014. The closing of the acquisition is also subject to approval by the Nebraska Department of Insurance and other customary conditions. Pending those approvals, the acquisition is expected to close during the third quarter of 2014.
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, surgeons, dentists, certified nurse midwives and allied healthcare providers, as well as more than 500 hospitals, health centers and clinics in 26 states from coast to coast. Coverys has net admitted assets of $3.4 billion, direct written premium of $363 million and policyholder surplus of $1.4 billion, as of December 31, 2013. In addition, Coverys member insurance companies Medical Professional Mutual Insurance Company (“ProMutual”) and ProSelect Insurance Company (“ProSelect”), as well as ProMutual-sponsored Coverys RRG, Inc. (“Coverys RRG”) have an A.M. Best Rating of A (Excellent). MHA Insurance Company (“MHAIC”) and Washington Casualty Company (“WCC”) have an A.M. Best Rating of A- (Excellent) and OHA Insurance Solutions, Inc. (“OHAIS”), an Ohio domestic insurance company, is not rated at this time.
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. Coverys also offers a variety of interactive continuing medical education (CME) activities to healthcare providers across the United States. For more information, visit the Coverys website at www.coverys.com. Timely industry and company news can also be found on the Coverys blog at coverys.wordpress.com, on Twitter (@Coverys) and on the company’s Facebook page.
PPIC is an A.M. Best Rated A- financially strong company that is owned by a group of Catholic health systems, representing over 600 acute care facilities, 300 long term care facilities, and employing 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
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.