ProAssurance has acquired Virginia-based Medmarc Insurance Group (Medmarc) on 1 January 2013.

Earlier, an agreement was inked to merge Medmarc into ProAssurance for a $153.7m, all cash, sponsored demutualization that will provide Medmarc’s eligible Members with cash payments of $146.2m and future policy credits of $7.5m.

ProAssurance chairman and chief executive officer Stan Starnes said that the transaction is expected to enhance the company’s ability to respond to new risks.

"Further, Medmarc’s book of legal professional liability business will expand our existing lawyers’ professional liability line and provide us with additional premium growth opportunities," Starnes added.

Medmarc president and chief executive officer Mary Todd Peterson as well as other key executives will continue their current roles at Medmarc.

Wells Fargo Securities and Sandler O’Neill + Partners served as financial advisors in the transaction for both the parties, while Burr & Forman and Luse Gorman Pomerenk & Schick acted as legal advisors.