Independent Nevada Doctors Insurance Exchange to Join ProAssurance [Professional Services Close – Up]

ProAssurance Corp. announced that Independent Nevada Doctors Insurance Exchange (IND), a Nevada reciprocal exchange, will become part of ProAssurance through a conversion from a reciprocal to a stock insurance company and simultaneous merger with a ProAssurance subsidiary.

According to a release on June 27, proceeds from the transaction will be paid to eligible IND subscribing policyholders.

IND is a writer of Medical Professional Liability ("MPL") insurance in the state of Nevada, based on 2011 Direct Premiums Written, as reported to the Nevada Division of Insurance. ProAssurance is the fourth largest MPL writer in Nevada, based on these reports.

"We are very pleased that IND will become part of ProAssurance," said Stan Starnes, the Chairman and Chief Executive Officer of ProAssurance. He added, "ProAssurance has been providing MPL coverage in Nevada since 1993, so we know the market well. We have always been impressed with the quality of IND's operations and their demonstrated commitment to their physician insureds. Given our shared history of commitment and service, we are confident that IND will be a good fit with the ProAssurance organization."

The Nevada operations of both companies will be combined into IND's Las Vegas office under the leadership of IND President James Hooban, who said, "We look forward to being a part of ProAssurance. Their balance sheet strength and broad array of MPL products will allow us to better serve the Nevada market and provide an unparalleled level of locally-based service."

Dr. Larry Allen, the Chairman of the Subscriber Advisory Committee (SAC) of IND noted the bottom line benefits to current subscribing policyholders, "We are excited about what this means to our insured physicians and those we hope to insure in the future. We are especially pleased that the proceeds from the transaction will reward the subscribers who helped build IND."

The sponsored conversion will convert IND into a non-public stock company. Simultaneously, IND will be merged with a subsidiary of ProAssurance and ProAssurance will pay cash to eligible subscribers to purchase the IND stock. ProAssurance is also purchasing IND's Attorney-in-Fact in a companion transaction.

The Board of Directors of ProAssurance and the SAC for IND have approved the transaction, which now requires that the SAC adopt a Plan of Conversion (Plan) to fulfill the requirements of the transaction. The Plan and the transaction require approvals from IND subscribers and theNevada Division of Insurance. The transaction is expected to close before the end of 2012. Terms of the transaction are not material to ProAssurance.

ProAssurance's legal advisor in the transaction is Burr & Forman, LLP. The financial advisor for IND is Keefe, Bruyette & Woods and IND's legal advisor is Edwards Wildman Palmer LLP.

ProAssurance Corp. is an independently traded specialty writer of medical professional liability insurance.

More information:

www.ProAssurance.com

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