Medical Professional Mutual Insurance Company (ProMutual), a Coverys member company, has reached an agreement to buy Preferred Professional Insurance Company (PPIC), for an undisclosed sum.
Located in Omaha, Nebraska, PPIC supports Catholic healthcare systems in the US by offering professional liability insurance, other casualty coverages, and various types of risk transfer products and services.
Coverys, which delivers medical professional liability insurance protection to physicians, hospitals, dentists and other healthcare providers, believes that the takeover of PPIC will boost its delivery of innovative products and services within the professional liability insurance marketplace.
Commenting on the deal, Coverys CEO and president Gregg Hanson said: "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."
PPIC CEO and president Lynnette Matza commented: "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."
The transaction is expected to conclude in the third quarter of 2014 subject to approval by the Nebraska Department of Insurance and other customary conditions including approval by a vote of PPIC shareholders.
Sherman & Company served as financial advisor and Skadden, Arps, Slate, Meagher & Flom acted as legal advisor for Coverys. Raymond James acted as financial advisor and Kutak Rock served as legal advisor to PPIC.
Image: Coverys agrees to purchase Preferred Professional Insurance. Photo: courtesy of adamr/FreeDigitalPhotos.net.