ProAssurance Ready for Deals as Insurer Expands, CEO Says
ProAssurance Corp. (PRA), the insurer that announced two acquisitions today, will be “opportunistic” as it considers more deals to grow in health-care liability coverage, Chief Executive Officer Stan Starnes said.
ProAssurance must “support a whole spectrum of health-care providers from home health-care aides to neurosurgeons” and device makers, Starnes said today on a conference call with analysts. “We are attentive to every opportunity that presents itself” and “when the right ones come along, we’re in a position to move and move very quickly.”
The firm, which sells professional coverage for doctors, agreed to buy Chantilly, Virginia-based Medmarc in a $153.7 million cash deal to expand in medical technology insurance, the companies said today in a statement. Medmarc writes policies for human trials and medical devices such as artificial knees and hips.
ProAssurance also will acquire Independent Nevada Doctors Insurance Exchange, which covers physicians in that state, the Birmingham, Alabama-based company said in a separate statement today. Terms weren’t disclosed.
Standard & Poor’s affirmed its BBB rating on ProAssurance after the announcements. The Medmarc acquisition will “modestly” increase ProAssurance’s risk and may help improve the company’s offerings, the ratings firm said in a statement.
ProAssurance advanced 0.5 percent to $86.21 at 12:48 p.m. in New York.
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