Back to top

Analyst Blog

Zacks Equity Research

ProAssurance Completes INDIE Deal

PRA EMCI

 ZacksTrade Now

This page is temporarily not available.  Please check later as it should be available shortly. If you have any questions, please email customer support at support@zacks.com or call 800-767-3771 ext.  9339.

Last week, ProAssurance Corporation (PRA - Analyst Report) announced the culmination of its acquisition of Independent Nevada Doctors Insurance Exchange (INDIE) – a reciprocal exchange based in Nevada. Consequently, INDIE will be converted into a stock insurance company from a reciprocal exchange, and thereafter operated as a subsidiary of ProAssurance.

Financial and other terms of the deal were not divulged. However, it has been declared that the subscribing policyholders of INDIE will receive the purchase consideration within 2 weeks.

The deal was announced in June this year and received the approval of the board of ProAssurance and the Subscriber Advisory Committee of INDIE in the same month. Later, it was approved by INDIE’s subscribing policyholders in a special meeting on October 29, 2012, and subsequently by the Nevada Division of Insurance on November 28, 2012. The approval by the Nevada Division of Insurance was based on a string of regulatory hearings.

Before the acquisition, INDIE was Nevada’s leading medical professional liability insurer, based on 2011 direct written premiums, whereas ProAssurance occupied the fourth position in the state. Thus, following the completion of the deal, the latter has emerged as the leading writer of medical professional liability insurance in Nevada by a huge margin, based on 2011 direct written premiums.

The acquisition will not only amplify ProAssurance’s medical professional liability insurance business, but also substantially boost its operations in Nevada. ProAssurance has been operating in Nevada since 1993. The company is one of the largest publicly-traded writers of medical professional liability insurance in the U.S.

Over the years, ProAssurance has significantly expanded its geographic footprint through the successful acquisition and integration of companies. In June 2012, the company announced an agreement to acquire Medmarc Insurance Group for an estimated cost of $153.7 million.

Medmarc is one of the leading underwriters of products liability insurance for medical technology and life sciences in the U.S. The acquisition is expected to be completed by the end of 2012, subject to the approval of the regulators as well as Medmarc’s eligible members.

ProAssurance carries a Zacks #2 Rank (Buy). We retain our long-term Neutral recommendation on the shares. Another operator in the property and casualty industry – EMC Insurance Group Inc. (EMCI - Snapshot Report) – carries a Zacks #1 Rank (Strong Buy).

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

Learn more

Start for as little as $4.50 per trade.

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
DIXIE GRP IN DXYN 15.84 +7.90%
BOFI HLDG IN BOFI 85.30 +4.97%
RAMBUS INC RMBS 12.31 +4.41%
VIPSHOP HOLD VIPS 148.73 +4.35%
NETFLIX INC NFLX 345.74 +4.32%