BIRMINGHAM, Ala. and NASHVILLE, Tenn., March 31 /PRNewswire-FirstCall/ -- ProAssurance Corporation (NYSE: PRA) announced today that the policyholders of the Podiatry Insurance Company of America (PICA) have overwhelmingly approved the sponsored demutualization that will bring PICA into ProAssurance as a standalone subsidiary. The transaction, which requires final regulatory approval in PICA's domiciliary state of Illinois, is expected to close early in the second quarter.
Under the agreement, approved today in a special meeting of policyholders, a total of $120 million is being paid to current and certain former policyholders in accordance with the approved plan of demutualization. The plan of demutualization also provides a total of $15 million in premium credits to eligible renewing PICA policyholders beginning in 2010 and spread over three years.
Policyholders who are due to receive a cash payment have until the close of business on Friday, April 10, 2009 to furnish properly completed paperwork to PICA or its paying agent, BNYMellon Shareowner Services. Policyholders who do not furnish the proper paperwork will be subject to federally mandated tax withholding on the payments due to them. Policyholders with questions about their paperwork may call PICA at (800) 913-0153.
ProAssurance Corporation is the nation's fifth largest writer of medical professional liability insurance and is growing its legal professional liability business. ProAssurance is recognized as one of the top performing insurance companies in America by virtue of its inclusion in the Ward's 50 for the past two years.
PICA is the nation's leading provider of professional liability to doctors of podiatric medicine, insuring approximately 9,800 podiatric physicians in 47 states and the District of Columbia. PICA insures other health care professionals and provides E&O insurance for a small, but growing, number of independent insurance agents through its subsidiary PACO. PICA wrote approximately $96 million in direct premium in 2008, has $284 million in total assets and has maintained an A. M. Best rating of "A-" (Excellent) for the past 13 years.
Caution Regarding Forward-Looking Statements
Statements in this news release that are not historical fact or that convey our view of future business, events or trends are specifically identified as forward-looking statements. Forward looking statements are based upon our estimates and anticipation of future events and highlight certain risks and uncertainties that could cause actual results to vary materially from our expected results. We expressly claim the safe harbor provisions of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, for any forward-looking statement in this news release.
Forward-looking statements represent our outlook only as of the date of this news release. Except as required by law or regulation, we do not undertake and specifically decline any obligation to publicly release the result of any revisions that may be made to any forward-looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events.
Forward-looking statements are generally identified by words such as, but not limited to, "anticipate," "believe," "estimate," "expect," "hope," "hopeful," "intend," "may," "optimistic," "potential," "preliminary," "project," "should," "will," and other analogous expressions. When we address topics such as liquidity and capital requirements, return on equity, financial ratios, net income, premiums, losses and loss reserves, premium rates and retention of current business, competition and market conditions, the expansion of product lines, the development or acquisition of business in new geographical areas, the availability of acceptable reinsurance, actions by regulators and rating agencies, court actions, legislative actions, payment or performance of obligations under indebtedness, payment of dividends, and other similar matters, we are making forward looking statements.
The following important factors are among those that that could affect the actual outcome of future events:
Additional risk factors that may cause outcomes that differ from our expectations or projections are described in various documents we file with the Securities and Exchange Commission, such as our current reports on Form 8-K, and our regular reports on Forms 10-Q and 10-K, particularly in "Item 1A, Risk Factors."
|SOURCE ProAssurance Corporation|
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