Berkshire Hathaway's subsidiary National Indemnity Company has signed an agreement to acquire New York-based Medical Liability Mutual Insurance Company (MLMIC).
Established in 1975, MLMIC underwrites medical professional liability insurance for its customers in New York.
Across New York State, the company insures about 15,000 physicians, 4,000 dentists and several hospitals.
MLMIC policyholders’ surplus was around $1.8bn as of December last year.
The company aims to provide quality professional liability insurance to physicians, dentists, hospitals and other healthcare professionals at the lowest possible cost consistent with fiscal responsibility
Subject to regulatory and policyholder approval, the deal is expected to complete in the third quarter of this year.
Berkshire Hathaway CEO Warren Buffett said: “MLMIC is a gem of a company that has protected New York’s physicians, mid-level providers, hospitals and dentists like no other for over 40 years.
“We welcome the chance to add them to the Berkshire Hathaway family and enhance their capacity to serve these and other policyholders for many years to come.”
MLMIC president Robert Menotti said: “MLMIC has always had strong standing and stability within the challenging New York insurance market, and the arrangement with Berkshire Hathaway will bring policyholders further peace of mind, knowing MLMIC will be able to offer an even higher level of financial security.”
National Indemnity Company provides a range of commercial insurance products, including commercial auto, general liability or garage liability coverage.
Image: MLMIC underwrites medical professional liability insurance in New York. Photo: courtesy of adamr / FreeDigitalPhotos.net.