Workers expect their defined contribution plans to play a greater role in their retirement income than annuities.
MMIC, the Midwest's largest medical professional liability company, 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 Minneapolis-based MMIC, but will retain its brand and board of directors. The terms of the transaction were not disclosed. 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.
In connection with UMIA's previously plans to sell itself to California-based The Doctors Co., UMIA had a short period in which it could consider other bids. MMIC emerged with a superior bid and was notified on Jan. 30 of the board's Unanimous decision to proceed with MMIC and recommend that UMIA's policyholders approve the transaction.
"A partnership between UMIA and MMIC will provide benefits for both sides," said Bill McDonough, president and CEO of 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. 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.
UMIA is a Salt Lake City-based reciprocal insurance company managed by USMA Insurance Management Co. It was formed in 1978.