|[February 04, 2013]
MMIC to Acquire Utah Medical Insurance Association
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.
"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'
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 ofMMIC'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
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
About Utah Medical Insurance Association
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,
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
Willis Capital Markets & Advisory acted as financial advisor to MMIC
solely to provide a fairness opinion on the transaction.
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