Norcal Mutual Insurance has agreed to acquire Florida-based FD Insurance, which provides medical malpractice insurance for physicians and surgeons.

Terms of the deal have not been disclosed.

Established in 2005, FD Insurance provides medical malpractice insurance for around 2,200 health care providers in Florida and Georgia.

The firm, which generates annualized gross written premium of about $28m, has assets of around $80m, as of 2014.

FD Insurance CEO and director William Russell said: "We are very pleased to be joining such a well-respected company as Norcal, who shares our commitment to always putting the best interests of policyholders first.

"FD will now be able to leverage the considerable resources of Norcal to bring additional value to our policyholders, while continuing to focus on our local market."

Norcal Mutual Insurance president and CEO Scott Diener said: "We are very pleased to announce this partnership between our two physician-focused companies and look forward to welcoming FD’s insureds to Norcal."

Norcal Mutual, which is a policyholder-owned and physician-directed medical professional liability carrier, has subsidiary firms PMSLIC Insurance and Medicus Insurance.

The company has recently included Kentucky in its coverage area, and is providing a new enhanced policy and shifting its policyholders from subsidiary Medicus Insurance to the parent firm.