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NAPA, Calif. & BIRMINGHAM, Ala. - The Doctors Company, a leading physician-owned medical malpractice insurer, has announced a definitive agreement to acquire ProAssurance Corporation (NYSE: PRA), a specialty insurer with a focus on medical liability. The transaction, valued at approximately $1.3 billion, will see ProAssurance stockholders receiving $25.00 in cash per share, a 60% premium over the closing price as of Monday.
The acquisition is poised to create a combined entity with assets totaling around $12 billion, enhancing The Doctors Company’s ability to serve a broader spectrum of healthcare professionals across the United States. Richard E. Anderson, MD, FACP, Chairman and CEO of The Doctors Company, highlighted the strategic move as a step towards providing superior service to larger healthcare teams through a mission-based organization with significant national scale and resources. InvestingPro analysis shows ProAssurance has maintained profitability with earnings per share of $1.03 over the last twelve months, making it an attractive acquisition target.
ProAssurance’s President and CEO, Ned Rand, emphasized the shared history and operating philosophies of both companies, which were founded by physicians during the medical liability crisis of the 1970s. He expressed confidence that the merger will offer substantial value to shareholders and allow the combined team to continue supporting healthcare providers effectively. This optimism is supported by ProAssurance’s strong market performance, with the stock delivering a 31.61% total return over the past year. For deeper insights into ProAssurance’s financial health and detailed analysis, investors can access the comprehensive Pro Research Report available on InvestingPro.
The ProAssurance Board of Directors has unanimously approved the deal and recommended that shareholders vote in favor of the agreement. The transaction, expected to close in the first half of 2026, is subject to customary closing conditions, including shareholder and regulatory approvals. Following the merger’s completion, ProAssurance will delist from the New York Stock Exchange and become a wholly-owned subsidiary of The Doctors Company.
Financial advisory services for The Doctors Company are being provided by Houlihan Lokey Capital, Inc. and Howden Capital Markets & Advisory, with Mayer Brown LLP acting as legal counsel. Goldman Sachs & Co. LLC is serving as the financial advisor to ProAssurance, while legal counsel is being provided by Simpson Thacher & Bartlett LLP and Willkie Farr & Gallagher LLP.
This announcement is based on a press release statement, and further details about the acquisition will be provided as the process moves forward.
In other recent news, ProAssurance Corporation reported impressive financial results for the fourth quarter of 2024, surpassing both earnings and revenue expectations. The company achieved an earnings per share (EPS) of $0.36, doubling the anticipated $0.18, while revenue reached $290.1 million, exceeding the forecasted $228.42 million. These results reflect a robust performance that has positioned ProAssurance favorably in the market. Additionally, the company’s net investment income rose by 9% for the quarter, contributing positively to its financial standing. The book value per share also saw an increase, rising to $23.49. Despite the strong earnings, ProAssurance continues to navigate challenges in the legal and workers’ compensation markets. Analysts from firms like Piper Sandler have noted the company’s strategic focus on maintaining rate adequacy and disciplined underwriting. The company’s leadership remains committed to leveraging new technologies and partnerships to enhance growth and profitability.
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