ProAssurance to acquire NORCAL Group

NORCAL Group and ProAssurance Corporation, both specialty insurers with expertise in healthcare professional liability, announced the signing of a definitive agreement to combine the companies. The transaction, valued at $600 million according to S&P Global, will result in the creation of the nation’s third-largest medical professional liability (MPL) insurance carrier, based on 2019 estimated statutory data.

“Bringing together these two great organizations provides ProAssurance and NORCAL Group with a transformational opportunity to enhance the services we can deliver to our customers and distribution partners, while creating significant long-term value for ProAssurance shareholders. Much like the predecessors to ProAssurance, NORCAL was founded by physicians in the 1970s to serve the professional liability insurance needs of physicians. NORCAL Group’s history and physician-focused culture make it a perfect fit for the ProAssurance family.” – Ned Rand, President and Chief Executive Officer of ProAssurance.

“We are thrilled to be partnering with ProAssurance. Given today’s challenging healthcare environment, both organizations will benefit significantly from the formation of this enhanced company. Combining with ProAssurance brings tremendous strategic value to NORCAL through increased financial strength, access to new and innovative products for policyholders, and the increased scale of our core services and data analytics. The completion of this transaction will enhance and expand NORCAL’s ability to serve its customers in the highly competitive MPL industry as we strive to carry out our mission.

ProAssurance is the perfect partner for us. They serve as a strong advocate of doctors. Importantly, in addition to the strength and stability they bring to our policyholders, they also offer a proven track record of successful integrations for our employees.” – Scott Diener, President and CEO of NORCAL.

Headquartered in Birmingham, Alabama, ProAssurance serves more than 54,000 healthcare providers in 49 states. The company had annualized medical professional liability gross written premium of approximately $475 million and assets of more than $4.8 billion at September 30, 2019. NORCAL Group and ProAssurance will work together to ensure all policyholders continue to receive industry-leading products and service and to assimilate the operations in the best interests of customers, employees, agents, and other key constituents.

The transaction is subject to customary conditions, including regulatory and NORCAL’s policyholder approval. While there is no specific timetable for completion of the transaction, it is anticipated that the deal will close at the end of 2020.