BIRMINGHAM, Ala. and NASHVILLE, Tenn., April 1 /PRNewswire-FirstCall/ -- ProAssurance Corporation (NYSE: PRA) announced today that it has closed the transaction that brings the Podiatry Insurance Company of America (PICA) into ProAssurance.
Stan Starnes, the Chairman and Chief Executive Officer of ProAssurance said, "We're excited about what PICA brings to our organization. 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 organization's ability to write new classes of medically-related professional liability insurance as a standalone subsidiary."
Jerry D. Brant, DPM, the Chief Executive Officer of PICA, stressed the advantages for PICA's policyholders. He said, "Joining ProAssurance further strengthens an already strong company. Both organizations share a common dedication to underwriting excellence, meaningful risk management, and an unwavering commitment to the finest claims defense. PICA's management team remains in place and PICA's operations remain headquartered in Nashville."
Under the terms of the agreement, a total of $120 million is being paid to current and certain former policyholders in accordance with the approved plan of demutualization. Another $15 million 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 Dr. Brant 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.
Mr. Starnes also highlighted ProAssurance's ability to complete the transaction during a difficult financial environment. He said, "We have always been careful stewards of the capital entrusted to us by shareholders. Our conservative approach ensured that we had sufficient capital to respond to this compelling opportunity without being forced into the credit or equity markets."
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|
Copyright©2009 PR Newswire.
All rights reserved