Medical Liability Mutual (MLMIC; New York) will sell West Windsor, N.J.-based Princeton Insurance to Medical Protective (MedPro; Fort Wayne, Ind.). All companies deal in liability insurance for healthcare providers.
The all-cash transaction, for which terms were not disclosed, is expected to close in the fourth quarter of 2011. The sale takes MLMIC out of the New Jersey market, but adds that market to Medical Protective's coverage area.
“MedPro’s acquisition of Princeton, if approved, would ensure that there is continuity of Princeton’s medical professional liability coverage for its current policyholders and enable Princeton to continue its mission in the future," MLMIC president Robert Menotti says in a statement. "MLMIC would benefit by being able to focus entirely on its commitment to New York State healthcare providers, offering the highest quality professional liability insurance to physicians, dentists, hospitals, and other healthcare providers at the lowest possible cost consistent with long term viability.
According to Warren Buffett, chairman of Berkshire Hathaway, the holding company that acquired MedPro in 2005, this buy is part of an aggressive growth strategy for the company.
“We … look forward to MedPro completing additional ‘add-on’ transactions with companies – like Princeton – who seek the world’s most stable home for their policyholders in a very unstable and changing healthcare liability landscape," Buffett said in a statement.