Intends to operate Advocate, MD as an independent subsidiary
FPIC Insurance Group (FPIC) and Advocate, MD Financial Group, have signed an agreement under which FPIC’s subsidiary, First Professionals Insurance will acquire Advocate, MD and its subsidiaries in an all cash transaction.
The total consideration for Advocate, MD is comprised of $33.6 million and up to $12 million in additional consideration, depending on the performance of Advocate, MD during the two-year period following completion of the acquisition. The amount of additional consideration will depend on Advocate, MD’s written premiums, combined ratio and underwriting profit over the two year period following the closing.
John Byers, president and CEO of FPIC, said: This transaction provides meaningful benefits to both organizations and is consistent with our long-term business strategy. Advocate, MD has established itself as an innovative company with an unwavering focus on serving the medical professional liability insurance needs of healthcare practitioners in Texas and Mississippi.”
Commenting on the transaction, Mark Adams, chairman, president and CEO of Advocate, MD, said: FPIC is a financially strong and well-respected organization, and shares our steadfast commitment to providing exceptional service to our policyholders and to the long-term success of the business. We believe that this transaction will benefit our policyholders while rewarding our shareholders for the value created since our founding in 2003.
FPIC Insurance Group, through its subsidiary companies, provides medical professional liability insurance for physicians, dentists and other healthcare providers.
Headquartered in Austin, Texas, Advocate, MD provides medical professional liability insurance in Texas and Mississippi through its subsidiary Advocate, MD Insurance of the Southwest, Inc.