A team of transactional, corporate, and insurance attorneys from Fox Rothschild LLP, led by Partners Peter Buckley and IADC member Carl Anthony Maio and Senior Associate Sandra Romaszewski, guided Healthcare Providers Insurance Exchange (HPIX), a top 10 insurer of physician commercial medical professional liability in the Mid-Atlantic area, in an acquisition in which HPIX’s rights, title, interests in and policies were acquired by Medical Mutual Insurance Company of North Carolina (Medical Mutual), a leading provider of medical professional liability for physicians in the Southeast.
The deal, which closed on December 31, 2015, was a complex regulatory transaction requiring multiple levels of approvals and numerous filings in Pennsylvania, North Carolina, New Jersey, Delaware and Maryland. It entailed the sale of four state books of business consisting of medical malpractice insurance policies to Medical Mutual Insurance Company. A specialized hybrid M&A transaction vehicle, Assumption Reinsurance, was used for the transaction.
“Joining Medical Mutual advances HPIX as the leading brand for Medical Professional Liability Insurance in the Mid-Atlantic and preserves the physician-owned, customer centricity of HPIX’s insurance platform,” said Tom Gaudiosi, Vice Chairman and Chief Executive Officer of HPIX. “With so much insurance M&A focused on cost, this transaction is unique because it is precipitated by a strategy to build worth and unlock value for our current and future members. Through an intense and diligent search, we found Medical Mutual to be the most symbiotic and synergistic partner. There is an obvious fit between HPIX and Medical Mutual that will be apparent to our policyholders as we deliver tangible benefits that will ensure their long-term success.”
“The addition of HPIX policyholders to Medical Mutual will provide benefits to both sides,” said Dale Jenkins, Chief Executive Officer of Medical Mutual. “The partnership expands Medical Mutual’s geographic footprint into the Mid-Atlantic States and continues the HPIX legacy of providing outstanding service, products and resources to policyholders. Medical Mutual and HPIX share a culture and philosophy focused on serving physician members.”
As part of the completed transaction, Medical Mutual offered employment to a majority of current HPIX employees who are integral to the future growth and success of the organization. “We are delighted to welcome a very experienced and talented team of HPIX professionals, in addition to their clients, agents, and brokers, to Medical Mutual,” said Jenkins. “As we continue to witness the expansion and growth of regional physician practices throughout the country, we are excited to work with their agents and brokers to build upon the HPIX franchise and expand the reach of Medical Mutual into the Mid-Atlantic.”