NU Online News Service, May 6, 3:30 p.m. EDT--Berkshire Hathaway Inc., a holding company led by legendary investor Warren Buffet, will expand its insurance-business portfolio by acquiring GE Insurance Solutions' medical liability insurance unit for $825 million.
In the transaction, GE Insurance Solutions' medical liability unit Medical Protective Corp. will be sold to National Indemnity, a unit of Berkshire Hathaway Inc.
Executives from GE revealed the purchase price in an investors conference call today, but did not discuss any other details of the transaction.
The Fairfield, Conn.-based General Electric said the transaction is expected to be completed by June 30 pending regulatory approvals.
Medical Protective Corp., based in Ft. Wayne, Ind., reported $737 million in gross written premiums in 2004. The company serves some 75,000 physicians and dentists and employs 330 people.
According to General Electric, Medical Protective Corp.'s current CEO Tim Kenesey will keep his post and the unit's principal operations will remain in Ft. Wayne after the transaction is completed.
Medical Protective Corp. was founded in Ft. Wayne in 1899.
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