News release from MedPro Group:
Berkshire Hathaway’s MedPro Group to Acquire PLICO Insurance
PLICO offices & policyholder services to remain in OK â€¦ financial strength rating upgrade likely
Oklahoma City, OK and Fort Wayne, IN (July 8, 2015) – PLICO, Inc. (PLICO), one of the Southwest’s premier healthcare liability insurers, the Oklahoma State Medical Association (OSMA), and Berkshire Hathaway’s MedPro Group (MedPro) today announced the signing of definitive agreements for the sale of PLICO to MedPro. The boards of each have approved OSMA’s sale to MedPro of 100% ownership of PLICO in an all-cash transaction, which is subject only to customary closing conditions and regulatory approvals and is expected to close in the third quarter.
“Joining Berkshire Hathaway’s MedPro Group emboldens PLICO’s expansion efforts by providing additional opportunities not available to us before,” said Carl Hook, M.D., President and CEO of PLICO. “MedPro shares our commitment to always put the insured first, and this transaction will give PLICO the unquestioned financial strength and additional product options to better serve local healthcare providers and entities without sacrificing our reputation for high-quality customer service and relational focus. Both PLICO and MedPro insureds will benefit greatly from our collaboration, which leverages the best combination of national resources with local expertise and service.”
Based in Oklahoma City, PLICO serves approximately 2200 healthcare providers in Oklahoma; it has annualized gross written premiums of about $30 million and had statutory surplus of over $60 million at year-end 2014. PLICO’s principal operations will remain in Oklahoma City, where it was founded in 1979. PLICO and MedPro will together work to ensure all policyholders continue to receive the best service and solutions.
“This is a great opportunity for the Oklahoma State Medical Association and our physicians,” said Woody Jenkins, M.D., President of the OSMA. “A true win-win, it will bring the OSMA resources to grow and expand our mission while also giving PLICO greater influence and support. There really could not be a better scenario for all parties.”
With the industry-leading financial strength of Berkshire’s MedPro supporting PLICO, upon the closing of the transaction, PLICO – currently not rated by leading insurance rater, A.M. Best – is expected to apply for financial strength ratings and be positioned to offer additional products and services.
Tim Kenesey, MedPro’s President and CEO, said: “This is a win for PLICO policyholders and distribution partners, who will continue to benefit from the same terrific local service long provided by PLICO, but soon with MedPro’s industry-leading financial rating and additional product offerings. It is also a win for the OSMA, who enjoyed an efficient transaction process with a trustworthy purchaser and who will continue to support PLICO as its exclusively endorsed professional liability carrier. Finally, it is a win for PLICO and MedPro, as we strengthen our business by serving the healthcare community in Oklahoma as a unified team.”
Warren Buffett, Chairman of Berkshire Hathaway, added: “Over the last decade, we have acquired Medical Protective, Princeton and now PLICO, and we are absolutely delighted with each of these acquisitions. Today, our MedPro Group is not only the nation’s leading healthcare liability company, providing peace of mind to the nation’s healthcare providers, we are also now a favored solution for owners of healthcare liability insurers who seek the world’s most stable home for their company and policyholders in a very unstable and changing healthcare landscape.”
The largest healthcare liability insurer in Oklahoma, PLICO has been serving the state’s medical community since 1979. PLICO offers coverage for medical professional and hospital professional liability, medical director and administrative services errors & omissions, as well as privacy & cyber liability and medical billing risks. With approximately 2,200 healthcare providers and $30 million in annual premium, PLICO is Oklahoma’s leader in professional liability coverage and risk solutions for physicians, hospitals and other healthcare providers and facilities. Known for its superior customer service, PLICO enjoys a reputation of providing personalized attention to its insureds, taking a customer-focused, compassionate approach as advocates for healthcare professionals. PLICO is also recognized as a Top Workplace winner in 2013 and 2014 for the state of Oklahoma. As the endorsed carrier of the Oklahoma State Medical Association and the Oklahoma Hospital Association, as well as the education partner for the Osteopathic Founders Foundation, PLICO is the insurer of choice for Oklahoma medical professionals. www.plico.com.
About MedPro Group – Berkshire Hathaway’s dedicated healthcare liability solution
As the nation’s first provider of healthcare liability insurance, MedPro Group has been protecting the assets and reputations of the healthcare community since 1899. With over $874 million in annual premium and more than 140,000 customers, MedPro Group is the national leader in customized insurance, claims, patient safety and risk solutions for physicians, surgeons, dentists and other healthcare professionals, as well as, hospitals, senior care and other healthcare facilities. MedPro Group includes The Medical Protective Company, Princeton Insurance Company and MedPro RRG Risk Retention Group. All insurance products are administered by MedPro Group and underwritten by these and other Berkshire Hathaway affiliates, including National Fire & Marine Insurance Company, all of which have earned financial strength ratings of A++ from A.M. Best. Its distribution partners include a nationwide network of licensed agents, brokers and wholesalers. MedPro Group is a Berkshire Hathaway business. www.medpro.com.