Today, NORCAL Mutual Insurance Company of San Francisco, CA announced that it has entered into a definitive merger agreement for the acquisition of Medicus Insurance Holdings, Inc. of Austin, TX and its wholly-owned subsidiary, Medicus Insurance Company. The transaction is subject to customary closing conditions, including receipt of regulatory approval.
NORCAL Mutual President & CEO, Jim Sunseri, commented, "This acquisition of a growing, national medical malpractice carrier affords the NORCAL Group, including NORCAL Mutual and PMSLIC Insurance Company of Mechanicsburg, PA, an opportunity to extend our reach nationally. Likewise, NORCAL's capital resources coupled with our A.M. Best rating of A (Excellent-Stable) will enable Medicus to continue on its growth trajectory."
Medicus is admitted to write business in 31 states throughout the country. In 2010, Medicus had direct written premiums of $54 million and the NORCAL Group had direct written premiums of $240 million. On a combined basis, the NORCAL Group will be the ninth largest provider of medical professional liability insurance in the country, according to information published by A.M. Best.
"We are very pleased to have Medicus join the NORCAL family," said Walter Keenan, Chairman of Medicus. "NORCAL is among the most respected companies in the industry and will greatly enhance Medicus's future growth prospects."
Eugenie Shea, President of Medicus, added, "Physicians will be pleased as well. We have combined the best of two strong organizations with shared values to better serve doctors throughout the U.S. These shared values align for the physician's peace of mind through personal service from an A-rated company."
NORCAL further noted that Eugenie Shea will continue in a leadership position with Medicus following the closing, and that Medicus will remain headquartered in Austin. Medicus expects to continue its current operations without change for the foreseeable future. Physicians and their professional insurance agents will continue to receive the excellent service and responsiveness that Medicus has become known for in the medical community.