The Doctors Company Acquires ProAssurance for $1.3bn
Deal News | Mar 20, 2025 | Re-Insurance News
The Doctors Company, a US-based medical malpractice insurance firm, has announced its plan to acquire ProAssurance Corporation, a specialty insurer, in a deal worth $1.3 billion. The acquisition, which values ProAssurance stock at $25.00 per share, reflects a 60% premium to its pre-announcement closing price on March 18, 2025. This strategic move is expected to enhance the capabilities and reach of The Doctors Company in the medical liability and specialty insurance market, combining assets worth approximately $12 billion post-transaction. Leaders from both companies highlight the synergy between their missions and cultures, both originally founded by physicians to address medical liability issues. The deal is scheduled to close in the first half of 2026, pending customary regulatory and shareholder approvals, with no financing condition attached. Financial advisors Houlihan Lokey Capital, Inc., Howden Capital Markets & Advisory, and legal counsel Mayer Brown LLP are advising The Doctors Company, while Goldman Sachs & Co. LLC and legal firms Simpson Thacher & Bartlett LLP and Willkie Farr & Gallagher LLP represent ProAssurance.
Sectors
- Insurance
- Healthcare
Geography
- United States – Both The Doctors Company and ProAssurance Corporation are U.S.-based companies, and their operations and the proposed acquisition primarily concern the U.S. market.
Industry
- Insurance – The article focuses on a transaction between two companies in the insurance sector, specifically within medical malpractice and specialty insurance.
- Healthcare – Both companies are founded by physicians and serve healthcare providers by offering medical malpractice insurance, thus directly relating to the healthcare industry.
Financials
- $1.3 billion – The total value of The Doctors Company's acquisition of ProAssurance Corporation.
- $25.00 per share – The cash value offered for each ProAssurance share, representing a 60% premium.
- 60% – The premium over the closing share price of ProAssurance on March 18, 2025.
- $12 billion – The estimated combined assets of The Doctors Company and ProAssurance post-acquisition.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| The Doctors Company | Bidding Company | Company | A leading medical malpractice insurance provider acquiring ProAssurance Corporation. |
| ProAssurance Corporation | Target Company | Company | A specialty insurer being acquired by The Doctors Company. |
| Richard E. Anderson, MD, FACP | Chairman and Chief Executive Officer | People | The Chairman and CEO of The Doctors Company, commenting on the strategic acquisition. |
| Ned Rand | President and Chief Executive Officer | People | The President and CEO of ProAssurance Corporation, discussing the value of the transaction. |
| Houlihan Lokey Capital, Inc. | Financial Advisor | Company | Serving as a financial advisor to The Doctors Company for the transaction. |
| Howden Capital Markets & Advisory | Financial Advisor | Company | Acting as a financial advisor to The Doctors Company. |
| Mayer Brown LLP | Legal Advisor | Company | Providing legal counsel to The Doctors Company. |
| Goldman Sachs & Co. LLC | Financial Advisor | Company | Acting as a financial advisor to ProAssurance Corporation. |
| Simpson Thacher & Bartlett LLP | Legal Advisor | Company | Serving as legal counsel to ProAssurance Corporation. |
| Willkie Farr & Gallagher LLP | Legal Advisor | Company | Serving as legal counsel to ProAssurance Corporation. |