Berkshire Hathaway's MedPro Group has agreed to acquire Oklahoma healthcare liability insurer PLICO in an all-cash transaction.
MedPro has signed agreements with the Oklahoma State Medical Association (OSMA) and PLICO, under which MedPro will purchase 100% stake from OSMA in PLICO.
PLICO president and CEO Carl Hook said: "MedPro shares our commitment to always put the insured first, and this transaction will give PLICO the unquestioned financial strength and additional product options to better serve local healthcare providers and entities without sacrificing our reputation for high-quality customer service and relational focus."
PLICO provides coverage for medical professional and hospital professional liability, medical director and administrative services errors and omissions, in addition to the privacy and cyber liability and medical billing risks.
With providing services to around 2200 healthcare providers in Oklahoma, the insurer reports annualized gross written premiums of around $30m and had statutory surplus of about $60m at year-end 2014.
Berkshire Hathaway chairman Warren Buffett said: "Over the last decade, we have acquired Medical Protective, Princeton and now PLICO, and we are absolutely delighted with each of these acquisitions."
Subject to customary closing conditions and regulatory approvals, the deal is expected to complete in the third quarter of this year.