Medical malpractice insurer The Doctors Company has reached a definitive agreement to acquire ProAssurance Corporation for $1.3bn.
Post-acquisition, ProAssurance will operate as a subsidiary of The Doctors Company.
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The transaction will result in a combined asset total of approximately $12bn for the medical malpractice insurer.
Shareholders of ProAssurance will receive $25 per share in cash.
This marks a 60% premium on the closing price of ProAssurance’s common stock on 18 March 2025.
The board of directors at ProAssurance has approved the deal and recommends shareholders to vote in its favour.
The deal completion is expected in the first half of 2026 (H1 2026), contingent on regulatory and ProAssurance shareholders’ approvals.
Upon finalisation, ProAssurance’s common stock will be delisted from the New York Stock Exchange (NYSE).
The Doctors Company CEO and chairman Richard E. Anderson said: “We are excited to further our mission to advance, protect and reward the practice of good medicine to an even greater number of healthcare providers across the nation.
“The addition of ProAssurance to The Doctors Company significantly enhances our ability to serve healthcare professionals now and well into the future.”
ProAssurance president and CEO Ned Rand stated: “This transaction will deliver significant value to our shareholders. Both ProAssurance and The Doctors Company were founded by physicians in response to the medical liability crisis of the 1970s. Both companies have grown over the years by bringing together other physician-founded companies.
“This shared history has helped both companies fulfill our shared mission to protect others and given us similar operating philosophies and cultures. Bringing the strengths and capabilities of our companies together now will allow our teams to continue to serve today’s healthcare providers with the necessary scale and breadth of capabilities.”
The Doctors Company secured financial advice from Houlihan Lokey Capital and Howden Capital Markets & Advisory, with Mayer Brown acting as legal counsel.
Goldman Sachs was financial advisor to ProAssurance, with legal counsel from Simpson Thacher & Bartlett and Willkie Farr & Gallagher.
