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Publish Date : 06-Feb-2013

MMIC, the Midwest’s largest medical professional liability company, today announced that it has entered into an agreement to acquire Utah Medical Insurance Association (UMIA), the leading provider of medical professional liability insurance for physicians in Utah, Montana, Idaho, and Wyoming. After the acquisition, UMIA will become a wholly-owned subsidiary of MMIC, but will retain its name, brand and board of directors. The terms of the transaction were not disclosed.

\"A partnership between UMIA and MMIC will provide benefits for both sides,\" said Bill McDonough, President and Chief Executive Officer, MMIC.

\"We will be better and stronger together. This partnership will extend MMIC’s geographic footprint and broaden UMIA’s access to products and services—and we are both interested in preserving our companies’ legacies.\"

Following the transaction, the combined companies will have nearly 20,000 policyholders in 14 states. The organizations will serve the entire health care spectrum: physicians, large hospitals and health systems, clinics, and outpatient and long-term care facilities.

Said Martin Oslowski, UMIA President and CEO, “We’re excited to join forces with MMIC. The UMIA board believes that UMIA’s policyholders will benefit from an acquisition by a larger, better capitalized company with a similar physician-focused culture and from MMIC’s leading physician litigation support program and health IT expertise. We also think that UMIA’s experience can enhance some of MMIC\'s existing programs, such as physician consulting services. Together we can create stronger systems and processes and drive efficiencies.”

In connection with UMIA’s transaction with The Doctors Company announced in October, UMIA had a short period in which it could consider other bids. MMIC emerged with a superior bid and was notified on January 30 of the board’s unanimous decision to proceed with MMIC and recommend that UMIA’s policyholders approve the transaction.

Said McDonough, “In the end, we were successful because we were able to assure UMIA that it can retain their own legacy, board and brand, which are highly valued by the board. Together we can provide significant value to our markets. And our two organizations, in addition to being complementary from a geographic perspective, are a better cultural and philosophical fit.”

The transaction is expected to close in the first half of 2013 and is subject to customary due diligence, regulatory approvals and UMIA policyholder approval.

Additional Acquisition Information - UMIA will provide its policyholders with a proxy statement in connection with seeking their approval of the proposed merger.

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