Berkshire Hathaway acquires healthcare liability insurer
Berkshire Hathaway’s healthcare liability insurer MedPro Group has unveiled plans to acquire Plico from the Oklahoma State Medical Association (OSMA).
The transaction, which is subject to customary closing conditions and regulatory approvals, is expected to close in the third quarter.
Based in Oklahoma, Plico serves approximately 2200 healthcare providers, with annualised gross written premiums of about $30 million.
Warren Buffett, chairman of Berkshire Hathaway, said: "Over the last decade, we have acquired Medical Protective, Princeton and now Plico, and we are absolutely delighted with each of these acquisitions.
“Today, our MedPro Group is not only the nation's leading healthcare liability company, providing peace of mind to the nation's healthcare providers, we are also now a favoured solution for owners of healthcare liability insurers who seek the world's most stable home for their company and policyholders in a very unstable and changing healthcare landscape.”
Carl Hook, president and chief executive officer (CEO) of Plico, said: "Joining Berkshire Hathaway's MedPro Group emboldens Plico's expansion efforts by providing additional opportunities not available to us before.
“MedPro shares our commitment to always put the insured first, and this transaction will give Plico the unquestioned financial strength and additional product options to better serve local healthcare providers and entities without sacrificing our reputation for high-quality customer service and relational focus. Both Plico and MedPro insureds will benefit greatly from our collaboration, which leverages the best combination of national resources with local expertise and service."
Upon the closing of the transaction, Plico is expected to apply for financial strength ratings and be positioned to offer additional products and services.
Tim Kenesey, MedPro's president and CEO, said: "This is a win for Plico policyholders and distribution partners, who will continue to benefit from the same terrific local service long provided by Plico, but soon with MedPro's industry-leading financial rating and additional product offerings.
“It is also a win for the OSMA, who enjoyed an efficient transaction process with a trustworthy purchaser and who will continue to support Plico as its exclusively endorsed professional liability carrier. Finally, it is a win for Plico and MedPro, as we strengthen our business by serving the healthcare community in Oklahoma as a unified team."
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