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ProAssurance closes PICA transaction

The agreement calls for Jerry Brant, CEO of PICA, to be nominated to a seat on ProAssurance's board of directors

ProAssurance, a writer of medical professional liability insurance, has closed the transaction that brings the Podiatry Insurance Company of America into the company.

Under the terms of the agreement reached between ProAssurance and Podiatry Insurance Company of America (PICA), a total of $120m is being paid to current and certain former policyholders in accordance with the approved plan of demutualisation. Another $15m in premium credits will go to eligible renewing PICA policyholders for three years beginning in 2010. Those due a share of the proceeds from the transaction will receive a check in mid-April.

Further, the agreement calls for Jerry Brant, CEO of PICA, to be nominated to a seat on ProAssurance’s board of directors; that nomination will be voted on by ProAssurance shareholders at their annual meeting in May 2009.

Stan Starnes, the chairman and CEO of ProAssurance, said: We’re excited about what PICA brings to our organisation. As the nation’s dominant writer of professional liability insurance for doctors of podiatric medicine, PICA brings profitable business to our top line, expands the number of states in which we write business and enhances our organisation’s ability to write new classes of medically related professional liability insurance as a standalone subsidiary.