ProAssurance Completes Acquisition of Independent Nevada Doctors Insurance Exchange

  ProAssurance Completes Acquisition of Independent Nevada Doctors Insurance

PR Newswire

BIRMINGHAM, Ala. and LAS VEGAS, Nov. 30, 2012

BIRMINGHAM, Ala. and LAS VEGAS, Nov. 30, 2012 /PRNewswire/ -- ProAssurance
Corporation (NYSE: PRA) announced today it has completed the acquisition of
Independent Nevada Doctors Insurance Exchange (IND). As a result of the
transaction, IND will become a subsidiary of ProAssurance immediately
following IND's conversion from a reciprocal to a stock insurance company.
Proceeds from the transaction will be paid to eligible IND subscribing
policyholders by mid-December.

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The Nevada Division of Insurance approved the transaction on November 28, 2012
following a series of regulatory hearings. Subscribing IND policyholders
previously approved the transaction in a special meeting on October 29, 2012.

The combination of IND and ProAssurance makes ProAssurance the leading writer
of Medical Professional Liability insurance in the state of Nevada, based on
2011 Direct Premiums Written.

"This is a banner day for ProAssurance and the insureds and staff at IND. We
are combining two companies with a long standing tradition of policyholder
service and courtroom advocacy. We look forward to responding to the evolving
healthcare professional liability risks in Nevada, a state where we have been
privileged to do business since 1993," said Stan Starnes, the Chairman and
Chief Executive Officer of ProAssurance.

The Nevada operations of both companies will be combined into IND's Las Vegas
office under the leadership of IND President James Hooban. He said, "We are
excited about the opportunities ahead of us as we bring ProAssurance's
industry-leading insurance products and risk management services to the Nevada
healthcare community."

About ProAssurance
ProAssurance Corporation is the nation's largest independently traded
specialty writer of medical professional liability insurance. ProAssurance is
recognized as one of the top performing insurance companies in America by
virtue of our inclusion in the Ward's 50 for the past six years. ProAssurance
is rated "A" (Strong) by Fitch Ratings; ProAssurance Group is rated "A"
(Excellent) by A.M. Best.

Caution Regarding Forward-Looking Statements
Statements in this news release that are not historical fact or that convey
our view of future business, events or trends are specifically identified as
forward-looking statements. Forward-looking statements are based upon our
estimates and anticipation of future events and highlight certain risks and
uncertainties that could cause actual results to vary materially from our
expected results. We expressly claim the safe harbor provisions of Section 27A
of the Securities Act of 1933, as amended, and Section 21E of the Securities
Exchange Act of 1934, as amended, for any forward-looking statements in this
news release. Forward-looking statements represent our outlook only as of the
date of this news release. Except as required by law or regulation, we do not
undertake and specifically decline any obligation to publicly release the
result of any revisions that may be made to any forward-looking statements to
reflect events or circumstances after the date of such statements or to
reflect the occurrence of anticipated or unanticipated events.

Forward-looking statements are generally identified by words such as, but not
limited to, "anticipate," "believe," "estimate," "expect," "hope," "hopeful,"
"intend," "may," "optimistic," "potential," "preliminary," "project,"
"should," "will," and other analogous expressions. When we address topics such
as liquidity and capital requirements, the value of our investments, return on
equity, financial ratios, net income, premiums, losses and loss reserves,
premium rates and retention of current business, competition and market
conditions, the expansion of product lines, the development or acquisition of
business in new geographical areas, the availability of acceptable
reinsurance, actions by regulators and rating agencies, court actions,
legislative actions, payment or performance of obligations under indebtedness,
payment of dividends, and other similar matters, we are making forward-looking

Risks that could adversely affect the proposed merger of Medmarc Insurance
Group (Medmarc) and the recently completed merger of Independent Nevada
Doctors Insurance Exchange (IND) into ProAssurance include, but are not
limited to, the following:

  othe board of directors of Medmarc may withdraw their recommendation in
    favor of a competing acquisition proposal;
  othose policyholders eligible to vote on the proposed Medmarc transaction
    may fail to approve it.
  othe businesses of ProAssurance and Medmarc or ProAssurance and IND may not
    be combined successfully, or such combination may take longer to
    accomplish than expected;
  othe cost savings from either transaction may not be fully realized or may
    take longer to realize than expected;
  ooperating costs, customer loss and business disruption following either or
    both transactions, including adverse effects on relationships with
    employees, may be greater than expected;
  ogovernmental approvals of either or both transactions may not be obtained
    or adverse regulatory conditions may be imposed in connection with
    governmental approvals of either or both transactions; and
  othere may be restrictions on our ability to achieve continued growth
    through expansion into other states or through acquisitions or business

The following important factors are among those that could affect the actual
outcome of other future events:

  othe expected benefits from completed and proposed acquisitions may not be
    achieved or may be delayed longer than expected due to business
    disruption, loss of customers, employees and key agents, increased
    operating costs or inability to achieve cost savings, and assumption of
    greater than expected liabilities, among other reasons;
  ogeneral economic conditions, either nationally or in our market areas,
    that are different than
  oour ability to maintain our dividend payments;
  oregulatory, legislative and judicial actions or decisions that could
    affect our business plans or operations;
  othe enactment or repeal of tort reforms;
  oformation or dissolution of state-sponsored medical professional liability
    insurance entities that could remove or add sizable groups of physicians
    from or to the private insurance market;
  othe impact of deflation or inflation;
  ochanges in the interest rate environment;
  ochanges in U.S. laws or government regulations regarding financial markets
    or market activity that may affect the U.S. economy and our business;
  ochanges in the ability of the U.S. government to meet its obligations that
    may affect the U.S. economy and our business;
  operformance of financial markets affecting the fair value of our
    investments or making it difficult to determine the value of our
  ochanges in accounting policies and practices that may be adopted by our
    regulatory agencies and the Financial Accounting Standards Board, the
    Securities and Exchange Commission, or the Public Company Accounting
    Oversight Board;
  ochanges in laws or government regulations affecting medical professional
    liability insurance or the financial community;
  othe effects of changes in the healthcare delivery system, including, but
    not limited to, the Patient Protection and Affordable Care Act;
  oconsolidation of healthcare providers and entities that are more likely to
    self insure and not purchase medical professional liability insurance;
  ouncertainties inherent in the estimate of loss and loss adjustment expense
    reserves and reinsurance, and changes in the availability, cost, quality,
    or collectability of insurance/reinsurance;
  oour ability to achieve continued growth through expansion into other
    states or through acquisitions or business combinations;
  othe results of litigation, including pre- or post-trial motions, trials
    and/or appeals we undertake;
  oan allegation of bad faith which may arise from our handling of any
    particular claim, including failure to settle;
  oloss of independent agents;
  ochanges in our organization, compensation and benefit plans;
  oour ability to retain and recruit senior management;
  oour ability to purchase reinsurance and collect recoveries from our
  oassessments from guaranty funds;
  oour ability to achieve continued growth through expansion into other
    states or through
    acquisitions or business combinations;
  ochanges to the ratings assigned by rating agencies to our insurance
    subsidiaries, individually or as a group;
  oprovisions in our charter documents, Delaware law and state insurance law
    may impede attempts to replace or remove management or attempts to
    initiate a takeover;
  ostate insurance restrictions may prohibit assets held by our insurance
    subsidiaries, including cash and investment securities, from being used
    for general corporate purposes;
  otaxing authorities can take exception to our tax positions and cause us to
    incur significant amounts of defense costs and, if our defense is not
    successful, additional tax costs, including interest and penalties; and
  oinsurance market conditions may alter the effectiveness of our current
    business strategy and affect our revenues.

Additional risk factors that may cause outcomes that differ from our
expectations or projections are described in various documents filed by
ProAssurance Corporation with the Securities and Exchange Commission, such as
current reports on Form 8K, and regular reports on Forms 10Q and 10K,
particularly in "Item 1A, Risk Factors."

SOURCE ProAssurance Corporation

Contact: Frank B. O'Neil, Sr. Vice-President, Corporate Communications &
Investor Relations, 800-282-6242, +1-205-877-4461,
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