The Doctors Company plans to take specialty medical insurer ProAssurance private in a deal worth $1.3 billion, the companies announced Wednesday.
The Doctors Company is one of the largest physician-owned medical malpractice insurers in the U.S., and the acquisition will set it up to serve a broader spectrum of healthcare professionals across the country.
ProAssurance is a specialty insurer with a focus on medical liability, products liability for medical technology and life sciences and workers’ compensation insurance.
The transaction, valued at approximately $1.3 billion, will see ProAssurance stockholders receiving $25 in cash per share, a 60% premium over the closing price as of Monday. The combined company will have assets of approximately $12 billion.
Shares of ProAssurance jumped 51% in aftermarket trading Wednesday. The insurance stock surged 48% Thursday.
“We are excited to further our mission to advance, protect, and reward the practice of good medicine to an even greater number of healthcare providers across the nation,” Richard E. Anderson, M.D., chairman and CEO of The Doctors Company, said in a statement. “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. The addition of ProAssurance to The Doctors Company significantly enhances our ability to serve healthcare professionals now and well into the future.”
Ned Rand, ProAssurance’s president and CEO, said both companies were founded by physicians in response to the medical liability crisis of the 1970s.
“Both companies have grown over the years by bringing together other physician-founded companies. This shared history has helped both companies fulfill our shared mission to protect others and given us similar operating philosophies and cultures. 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,” Rand said.
The board of directors of ProAssurance has unanimously approved the transaction.
The transaction is expected to close in the first half of 2026, and, upon closing, ProAssurance will no longer be listed on the New York Stock Exchange and will become a wholly owned subsidiary of The Doctors Company.
The Doctors Company is part of the TDC Group, a physician-owned provider of insurance and risk management solutions. The TDC Group serves more than 110,000 healthcare professionals and organizations nationwide with annual revenue of $1.5 billion and more than $8 billion in assets.
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