The Doctors Company To Acquire ProAssurance In $1.3 Bln Deal

(RTTNews) - The Doctors Company, the largest physician-owned medical malpractice insurer in the U.S., Wednesday has announced its acquisition of ProAssurance Corporation (PRA), a US-based specialty insurer.

Under the definitive agreement, ProAssurance stockholders will receive $25.00 per share in cash, representing a 60% premium to the closing price on March 18, 2025. The transaction, valued at approximately $1.3 billion, will result in a combined company with assets totaling around $12 billion.

Richard E. Anderson, Chairman and CEO of The Doctors Company, emphasized that the merger strengthens their ability to support healthcare providers nationwide, aligning with their mission to protect and advance medical practice. He noted that as healthcare teams expand, a nationwide-scale company is necessary to provide optimal service.

Ned Rand, President and CEO of ProAssurance, highlighted the historical connection between the two companies, both founded by physicians in response to the medical liability crisis of the 1970s. He stated that the merger would enhance their ability to serve healthcare professionals with expanded resources and capabilities.

The ProAssurance Board of Directors has unanimously approved the transaction and will recommend shareholder approval. Expected to close in the first half of 2026, the deal is subject to customary conditions, including regulatory and stockholder approvals. Once finalized, ProAssurance will become a wholly owned subsidiary of The Doctors Company and will no longer be listed on the New York Stock Exchange.

Wednesday, PRA closed at $15.54, down 1.27%, and is currently trading at $23.47 in after-hours trading, reflecting a 51.03% increase on the NYSE.