The Doctors Company, the Napa, California-based physician-owned medical malpractice insurer, announced it has entered an agreement to acquire ProAssurance Corp. for $1.3 billion, taking the company private.
Under the terms of the agreement, ProAssurance stockholders will receive $25.00 in cash per share, representing approximately a 60% premium to the closing price per share of ProAssurance common stock on March 18, the last trading day prior to the deal announcement on March 19.
Birmingham, Alabama-headquartered ProAssurance is a specialty insurer with expertise in medical liability, products liability for medical technology and life sciences, and workers’ compensation insurance.
The transaction is expected to close in the first half of 2026. Upon completion, ProAssurance’s common stock will no longer be listed on the New York Stock Exchange, and ProAssurance will become a wholly owned subsidiary of The Doctors Company, creating a combined company with assets of approximately $12 billion.
The Board of Directors of ProAssurance has unanimously approved the deal and will recommend that shareholders do the same.
“Healthcare is a team sport, and the teams are getting larger. In order to provide them the best imaginable service requires a mission-based company with nationwide scale, resources, and dedication to all medical professions and healthcare providers,” commented Richard E. Anderson, chairman and chief executive officer of The Doctors Company, in a statement. “The addition of ProAssurance to The Doctors Company significantly enhances our ability to serve healthcare professionals now and well into the future.”
“Both ProAssurance and The Doctors Company were founded by physicians in response to the medical liability crisis of the 1970s,” according to Ned Rand, ProAssurance’s president and chief executive officer.
“This shared history has helped both companies fulfill our shared mission to protect others and given us similar operating philosophies and cultures,” he added. “Bringing the strengths and capabilities of our companies together now will allow our teams to continue to serve today’s healthcare providers with the necessary scale and breadth of capabilities.”
Houlihan Lokey Capital, Inc. and Howden Capital Markets & Advisory are serving as financial advisers and Mayer Brown LLP is serving as legal counsel to The Doctors Company.
Goldman Sachs & Co. LLC is serving as financial adviser and Simpson Thacher & Bartlett LLP and Willkie Farr & Gallagher LLP are serving as legal counsel to ProAssurance.
