MINNEAPOLIS--(BUSINESS WIRE)--MMIC, the Midwest’s largest medical professional liability company, today announced that it has entered into an agreement to acquire Utah Medical Insurance Association (UMIA), the leading provider of medical professional liability insurance for physicians in Utah, Montana, Idaho, and Wyoming. After the acquisition, UMIA will become a wholly-owned subsidiary of MMIC, but will retain its brand and board of directors. The terms of the transaction were not disclosed.
“We will be better and stronger together. This partnership will extend MMIC’s geographic footprint and broaden UMIA’s access to products and services—and we are both interested in preserving our companies’ legacies.”
"A partnership between UMIA and MMIC will provide benefits for both sides," said Bill McDonough, President and Chief Executive Officer, MMIC. "We will be better and stronger together. This partnership will extend MMIC’s geographic footprint and broaden UMIA’s access to products and services—and we are both interested in preserving our companies’ legacies."
Following the transaction, the combined companies will have nearly 20,000 policyholders in 14 states. The organizations will serve the entire health care spectrum: physicians, large hospitals and health systems, clinics, and outpatient and long-term care facilities.
Said Martin Oslowski, UMIA President and CEO, “We’re excited to join forces with MMIC. The UMIA board believes that UMIA’s policyholders will benefit from an acquisition by a larger, better capitalized company with a similar physician-focused culture and from MMIC’s leading physician litigation support program and health IT expertise. We also think that UMIA’s experience can enhance some of MMIC's existing programs, such as physician consulting services. Together we can create stronger systems and processes and drive efficiencies.”
In connection with UMIA’s transaction with The Doctors Company announced in October, UMIA had a short period in which it could consider other bids. MMIC emerged with a superior bid and was notified on January 30 of the board’s unanimous decision to proceed with MMIC and recommend that UMIA’s policyholders approve the transaction.
Said McDonough, “In the end, we were successful because we were able to assure UMIA that it can retain their own legacy, board and brand, which are highly valued by the board. Together we can provide significant value to our markets. And our two organizations, in addition to being complementary from a geographic perspective, are a better cultural and philosophical fit.”
The transaction is expected to close in the first half of 2013 and is subject to customary due diligence, regulatory approvals and UMIA policyholder approval. UMIA will provide its policyholders with a proxy statement in connection with seeking their approval of the proposed merger.
About Utah Medical Insurance Association
UMIA (www.umia.com) is an Oregon reciprocal insurance company with its principal administrative offices in Salt Lake City, Utah. As a reciprocal insurance company, it is managed by USMA Insurance Management Company, its attorney-in-fact.
UMIA has provided medical professional liability insurance for physicians, clinics and hospitals since its formation in 1978. UMIA is owned by and operated in the interest of its policyholders.
MMIC is the largest policyholder-owned medical liability insurance company in the Midwest, serving the entire health care community, including small practices, hospitals, outpatient and long-term care facilities. MMIC is always thinking ahead to find new and better ways to protect clients through risk financing, improving patient safety, physician well-being, and reducing risks associated with information technology. The company provides peace of mind so clients can focus on delivering health care in an era of health care reform, increasing regulations and a growing patient base. MMIC is headquartered in Minneapolis.
Willis Capital Markets & Advisory acted as financial advisor to MMIC solely to provide a fairness opinion on the transaction.