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BIRMINGHAM, Ala. - ProAssurance Corporation (NYSE:PRA), a medical liability insurer with a market capitalization of $1.18 billion and an impressive 80% stock return over the past year, announced that its stockholders have overwhelmingly approved the company’s proposed acquisition by The Doctors Company, with more than 99% of votes cast in favor of the transaction. According to InvestingPro analysis, the company currently trades near its 52-week high of $23.70.
The acquisition still requires regulatory approvals, including clearance under the Hart-Scott-Rodino Act and approvals from insurance regulators in states where ProAssurance has insurance subsidiaries. The transaction is expected to close in the first half of 2026 and is not subject to a financing condition.
Upon completion, ProAssurance will become a wholly owned subsidiary of The Doctors Company, and its common stock will be delisted from the New York Stock Exchange.
"Our shareholders recognize that this transaction will deliver significant value," said Ned Rand, ProAssurance’s President and Chief Executive Officer, according to the company’s press release. He noted that combining the strengths of both companies would allow them to serve healthcare providers with enhanced capabilities.
ProAssurance Corporation specializes in medical professional liability and products liability insurance for medical technology and life sciences, along with workers’ compensation insurance in the eastern United States. The company’s group is rated A (Excellent) by AM Best.
The announcement comes as both companies share a history in the medical professional liability marketplace with similar operating philosophies and cultures, according to the press release statement.
In other recent news, ProAssurance Corporation has experienced notable developments concerning its stock rating and acquisition. Analysts at Raymond James downgraded ProAssurance’s stock from ’Market Perform’ to ’Underperform,’ citing concerns over the company’s valuation and anticipated earnings per share for 2025. The downgrade is linked to the pending acquisition by The Doctors Company, which is awaiting regulatory approval. ProAssurance’s estimated EPS multiple for 2025 is significantly higher than its peers, despite a lower projected return on equity, leading analysts to suggest better investment opportunities may exist elsewhere. Similarly, Citizens JMP analysts have downgraded ProAssurance from ’Market Outperform’ to ’Market Perform.’ This decision follows the acquisition announcement by The Doctors Company, which offered a 60% premium over ProAssurance’s closing share price on March 18. The acquisition price values the company at a 25x multiple of its estimated 2026 EPS, leading analysts to believe the current market price reflects the acquisition’s potential outcomes. Both firms suggest limited stock price movement in the near term as the acquisition progresses.
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