Medical professional liability company MMIC has agreed to purchase a medical professional liability insurance provider Utah Medical Insurance Association (UMIA), in an undisclosed deal.
Following completion of the transaction, the acquired entity will operate as a wholly-owned subsidiary of MMIC, but will maintain its brand-name and board of directors.
MMIC president and chief executive officer Bill McDonough said, "This partnership will extend MMIC’s geographic footprint and broaden UMIA’s access to products and services — and we are both interested in preserving our companies’ legacies."
The integrated entity will have approximately 20,000 policyholders in 14 states and serve physicians, large hospitals and health systems, clinics, and outpatient and long-term care facilities.
Subject to customary closing conditions as well as approvals from the regulators and UMIA policyholders, the transaction is likely to complete during the first half of 2013.
Willis Capital Markets & Advisory served as financial advisor to MMIC and offered a fairness opinion on the transaction.
Founded in 1978, UMIA trades as a reciprocal insurance company and offers medical professional liability insurance for physicians, clinics and hospitals.
Headquartered in Minneapolis, MMIC is policyholder-owned medical liability insurance company.