Last week, ProAssurance Corporation (PRA - Free Report) joined hands with the Cooperative of American Physicians Inc. (CAP) Last week, ProAssurance Corporation (PRA - Free Report) joined hands with the Cooperative of American Physicians Inc. (CAP) to provide a new liability protection product, CAPAssurance in California.
CAPAssurance is aimed at catering to the needs of hospitals and other medical facilities in California. As per the deal CAPAssurance will combine the financial resources of ProAssurance and the medical professional liability experience of the physicians’ organization to provide liability protection to California’s regional and community hospitals.
For the last 40 years, CAP has been providing physicians with solutions to help them reduce risks and hedge exposures, and best in class legal solutions when a claim is filed. As per the joint venture, CAPAssurance will continue to use the same CAP Claims Services to protect these physicians.
The long-term success and experience of CAP has influenced ProAssurance to ink the deal with the company. The deal will allow ProAssurance to utilize its strong financial position and expertise, and assist CAP to come up with innovative solutions to the expensive set of liabilities faced by the healthcare facilities of California.
In turn the launch of CAPAssurance will allow ProAssurance to write more premiums in its California operations. We expect the deal to boost revenues of ProAssurance thereby augmenting earnings, going forward.
In order to expand its operations, ProAssurance engages in a number of strategic liaisons. Previously in Jan 2013, the company completed the acquisition of insurance underwriting company – Medmarc Insurance Group to diversify its portfolio of insurance products.
Among others from the industry, Arch U.S. MI, the U.S. subsidiary of Arch Capital Group Ltd. (ACGL - Free Report) announced to acquire CMG Mortgage Insurance Company (CMG MI) from PMI Mortgage Insurance Company for $300 million to penetrate deep into the U.S. Mortgage Insurance market.
ProAssurance currently carries a Zacks Rank #3 (Hold). Arch Capital and other stocks in the industry like Cincinnati Financial Corporation (CINF - Free Report) and Navigators Group Inc. (NAVG - Free Report) carry a favorable Zacks Rank #1 (Strong Buy) and are worth noting.