FPIC Insurance Group, Inc. of Jacksonville, a provider of medical professional liability insurance for physicians, dentists, and other health care providers, and The Doctors Company, the nation's largest insurer of physician and surgeon medical professional liability, have entered into a definitive agreement in which The Doctors Company will acquire FPIC for $42.00 per share in cash, representing an aggregate purchase price of approximately $362 million. The $42.00 per share price represents a premium of approximately 31 percent over the $32.10 per share closing price of FPIC on May 23, 2011, the last trading day prior to the May 24 announcement.
FPIC is the largest provider of medical professional liability insurance in Florida, the fourth largest provider in Texas and a top five provider in Georgia and Arkansas. FPIC writes medical professional liability insurance in 14 states and is licensed to write in 32 states. The company has over 18,000 policyholders, an A- rating by A.M. Best Company and an A- rating from Fitch Ratings.
Founded by doctors for doctors in 1976, The Doctors Company is the nation's largest insurer of physician and surgeon medical professional liability with nearly 55,000 member physicians, $4 billion in assets, an A rating by Fitch Ratings, and an A- rating by A.M. Best Company.
FPIC's board of directors has unanimously approved the transaction and has resolved to recommend that its shareholders approve the agreement. The transaction is expected to close by the fourth quarter of 2011 and is subject to customary closing conditions, including the receipt of regulatory approvals and approval by the holders of a majority of the outstanding shares of FPIC common stock.
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