Alabama-based ProAssurance Corporation and OHIC Insurance Company announced that ProAssurance will purchase the renewal rights to all of OHIC’s physician, hospital and healthcare facility business in Indiana, Illinois, Kansas, Kentucky and Wisconsin. OHIC’s policyholders in Ohio are not affected by the transaction and will reportedly benefit from OHIC’s renewed focus on its home state.
Under terms of the transaction ProAssurance will have the right to offer renewal to OHIC’s non-Ohio physician, hospital and healthcare facility clients whose policies expire on or after May 1, 2004. ProAssurance will work with OHIC agents, many of whom are already appointed by ProAssurance. The renewals will be strictly underwritten using ProAssurance guidelines and rates; only claims-made coverage will be offered. ProAssurance is not assuming any prior liability for policies written by OHIC.
As of March 1, 2004, this business represented approximately $17 million of in-force premium to OHIC. ProAssurance reportedly cannot say with any certainty how much of this premium it will successfully renew.
“We are delighted to be able to offer our financial strength and defense expertise to more than 800 physicians and almost 100 hospitals,” said ProAssurance Chairman, A. Derrill Crowe. Crowe stressed the transaction’s importance to ProAssurance’s careful growth strategy. He said, “This transaction allows us to establish a meaningful presence in Kansas and Wisconsin, states we’ve identified as key expansion states contiguous to our existing business footprint. We also have the opportunity to strengthen our book of business in Indiana, Illinois and Kentucky.”
OHIC Insurance Company President and Chief Executive Officer, Raymond Mazzotta said OHIC is returning to its roots as an Ohio-founded company. “Since our founding in 1978 we’ve been a leader in the Ohio medical liability insurance market and this transaction will allow us to concentrate on the market we know best.” Mazzotta said the transaction builds on the progress made by OHIC in 2003. “Our policyholders in Ohio will clearly benefit from the increased financial strength we’ll be able to devote to Ohio.”
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