Mid-Continent is expected to produce business for ProAssurance's subsidiary, Red Mountain Casualty
ProAssurance, a holding company for property and casualty insurance companies focused on professional liability insurance, has announced that it will acquire Mid-Continent General Agency for an undisclosed price.
Mid-Continent is a managing general agent producing about $25 million a year in premiums from ancillary healthcare providers and other professional liability coverages. The transaction is expected to close in the month of January
in 2009.
Mid-Continent will produce business for ProAssurance’s excess and surplus lines subsidiary, Red Mountain Casualty, also at the same time it will continue to place some business into other established markets as well with which it is already doing business. ProAssurance will derive commission income from business Mid- Continent places with other companies.
Philip Cabaud, the president of Mid-Continent said that ProAssurance’s expansion into this segment of the healthcare market will fill an important niche.
Stan Starnes, CEO of ProAssurance, said: Bringing Mid-Continent into our organisation will not only provide a steady stream of well underwritten, profitable business, it will expand our presence in the growing market for ancillary healthcare providers. This is a segment of the medical professional liability market that we think will continue to experience significant expansion as healthcare evolves in the coming years.