Media Contact: J. Rodriguez, MMICPhone: 952-838-6700/800-328-5532E-mail:
MMIC to Acquire Utah Medical Insurance Association
Partnership Will Extend MMIC’s Geographic Footprint, Broaden UMIA’s Access to Products and Services
Minneapolis — Feb. 5, 2013 — MMIC, the Midwest’s largest medical professional liability company, today announced that it has entered into a partnership agreement to acquire Utah Medical Insurance Association (UMIA), the leading provider of medical professional liability insurance for physicians in Utah, Montana, Idaho and Wyoming.
Through the agreement, each company will retain its brand and board of directors. Terms of the transaction, which is subject to customary due diligence, were not disclosed. UMIA now becomes a wholly-owned subsidiary of MMIC. "A partnership between UMIA and MMIC will provide benefits for both sides," said Bill McDonough, president and CEO, 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 the legacy of our respective companies."
Combined, the number of policyholders between the two companies will be nearly 20,000, with a reach of 14 states. The organizations will serve the entire health care spectrum, from large hospitals and health systems, to 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 boards believe that UMIA’s policyholders will benefit from an acquisition by a larger, better capitalized company with a similar physician-focused culture. In addition to increased access to products, services and market share, we’ll benefit from MMIC’s leading physician litigation support program and health IT expertise. And 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 October, The Doctor’s Company announced they would acquire UMIA and signed a definitive merger agreement to that effect. The agreement contained a go-shop clause. This allowed UMIA to solicit bids from other carriers. UMIA received multiple bids from PIAA companies. MMIC’s bid was deemed superior and the UMIA board accepted it on Wednesday, January 30.
Said McDonough, “In the end, we were successful because we were able to assure UMIA that they can retain their own legacy, board and brand, which they value very much. 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 UMIA Board of Governors unanimously approved the transaction and resolved to recommend that UMIA's subscribers approve the Merger Agreement. The transaction is expected to close in the first half of 2013 and is subject to regulatory approvals and approval by two-thirds of UMIA's subscribers voting on the transaction. Willis Capital Markets & Advisory provided a fairness opinion to MMIC on the transaction.
The map illustrates the extended reach of the newly combined company.
About Utah Medical Insurance Association
UMIA (www.UMIA.com) is an Oregon reciprocal insurance company with its principal administrative offices in Salt Lake City, Utah. As a reciprocal insurance company, it is managed by USMA Insurance Management Company, its attorney-in-fact.
The Board of the attorney-in-fact has approved the merger. UMIA has provided medical professional liability insurance for physicians, clinics and hospitals since its formation in 1978. UMIA is owned by and operated in the interest of its policyholders, who are referred to as "subscribers." UMIA now becomes a wholly owned subsidiary of MMIC.
MMIC is the largest policyholder-owned medical liability insurance company in the Midwest. We serve the entire health care community, including small practices, hospitals, outpatient and long-term care facilities. We are always thinking ahead to find new and better ways to protect clients through risk financing, improving patient safety, physician well-being, and reducing risks associated with information technology. We provide peace of mind so clients can focus on delivering health care in an era of health care reform, increasing regulations and a growing patient base. MMIC is headquartered in Minneapolis.
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