Birmingham, September 30, 2025
News Summary
ProAssurance Corporation, a medical liability insurance provider from Birmingham, is set to be acquired by The Doctors Company for approximately $1.3 billion. The acquisition has been approved by ProAssurance’s Board of Directors and awaits regulatory and shareholder approvals. Stockholders will receive $25 per share, reflecting a 60% premium over recent prices. The merger will result in a combined asset total of around $12 billion, enhancing service capabilities for healthcare providers nationwide.
Birmingham
ProAssurance Corporation, a medical liability insurance provider based in Birmingham, is set to be acquired by The Doctors Company, the largest physician-owned medical malpractice insurer in the nation, for approximately $1.3 billion. The acquisition has been unanimously approved by ProAssurance’s Board of Directors and is contingent upon regulatory and shareholder approvals.
Under the terms of the deal, ProAssurance stockholders will receive $25 per share in cash, which reflects a roughly 60% premium over the company’s closing stock price of just over $23 per share on March 18, 2025.
The transaction is anticipated to close in the first half of 2026. When finalized, ProAssurance will be delisted from the New York Stock Exchange and will operate as a wholly owned subsidiary of The Doctors Company. The merger between these two entities will yield a combined total of approximately $12 billion in assets.
Details of the Agreement
Both firms originated from a response by physicians to the medical liability crisis of the 1970s. The Doctors Company aims to elevate its service capabilities to healthcare providers and escalate their presence in the marketplace through this acquisition.
ProAssurance’s CEO, Ned Rand, praised the alignment of missions and operational philosophies between the two companies. In cases where job positions may be eliminated within the first year post-acquisition, employees affected will receive severance packages that account for their years of service at ProAssurance.
About The Doctors Company
The Doctors Company is a division of TDC Group, serving more than 110,000 healthcare professionals and organizations across the nation. The company generates annual revenues of $1.5 billion and currently controls over $8 billion in assets.
Financial and Legal Advisors
The financial advisory roles in this transaction include Houlihan Lokey Capital, Inc. and Howden Capital Markets & Advisory for The Doctors Company, alongside Goldman Sachs & Co. LLC for ProAssurance. Legal counsel includes Mayer Brown LLP representing The Doctors Company and Simpson Thacher & Bartlett LLP for ProAssurance.
Conclusion
The acquisition by The Doctors Company represents a significant movement within the medical liability sector, likely enhancing service delivery and operational efficiency for healthcare providers across the United States.
Frequently Asked Questions
What is the value of the acquisition of ProAssurance Corporation by The Doctors Company?
The acquisition is valued at approximately $1.3 billion.
What will ProAssurance stockholders receive per share?
ProAssurance stockholders will receive $25 per share in cash, representing a roughly 60% premium over the closing price per share as of March 18, 2025.
When is the transaction expected to close?
The transaction is expected to close in the first half of 2026.
How will this acquisition affect ProAssurance employees?
If job positions are eliminated within the first year after the acquisition is finalized, affected employees will receive severance with credit for their years of service with ProAssurance.
What are the combined assets of ProAssurance and The Doctors Company post-acquisition?
The combined entity will possess approximately $12 billion in assets following the merger.
Key Features of the Acquisition
| Feature | Details |
|---|---|
| Acquisition Value | $1.3 billion |
| Stockholder Payment | $25 per share (60% premium) |
| Closing Date | First half of 2026 |
| Combined Assets | $12 billion |
| Number of Healthcare Professionals Served | 110,000 |
Deeper Dive: News & Info About This Topic
HERE Resources
Birmingham’s ProAssurance Acquired by The Doctors Company
Birmingham Promise Scholarship Deadline Approaches
ProAssurance to Be Acquired by The Doctors Company for $1.3 Billion
Birmingham Insurance Landscape Transformed by Major Merger
Additional Resources
- Business Alabama: ProAssurance Agrees to Acquisition
- Business Wire: The Doctors Company and ProAssurance Announce Early Termination
- AL.com: Birmingham Insurance Company Acquired in $1.3 Billion Deal
- Wikipedia: Medical Malpractice
- Google Search: ProAssurance Corporation acquisition
Author: STAFF HERE BIRMINGHAM WRITER
The BIRMINGHAM STAFF WRITER represents the experienced team at HEREBirmingham.com, your go-to source for actionable local news and information in Birmingham, Jefferson County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the Sidewalk Film Festival, Sloss Music & Arts Festival, Magic City Classic, and civil rights commemorations. Our coverage extends to key organizations like the Birmingham Business Alliance and the Birmingham Civil Rights Institute, plus leading businesses in healthcare, finance, and manufacturing that power the local economy such as UAB Medicine, Regions Bank, and Encompass Health. As part of the broader HERE network, including HEREHuntsville.com, we provide comprehensive, credible insights into Alabama's dynamic landscape.
