Texas Medical Liability Trust Buys Florida-Based Medical Professional Liability Insurer

Texas Medical Liability Trust has agreed to acquire Florida-based Physicians Insurance Co.

As part of the agreement, Texas Medical Liability will buy several related entities involved in insurance-related business, including Managed Insurance Services, National Institute of Quality Assurance, Insurance Software Design and Insurance Innovations.

Based in Deerfield Beach, Fla., Physicians Insurance has a core physician business and provides professional liability products and services to medical and nonmedical professionals in all 50 states.

Texas Medical Liability President and Chief Executive Officer Charles R. Ott, Jr. described Physicians Insurance as having an "entrepreneurial spirit." Ott became the company's new president and CEO in late July 2011.

"Our acquisition of PIC will diversify our product base, enable us to expand to new markets and bring a more technology-based approach to the way we do business," he said in the statement.

Thanks to tort reform, Texas has become a crowded market for medical liability insurers. Between September 2003 and the end of 2009, the number of carriers actively writing coverage in the state rose from four to more than 13. Rates on average declined 27.5%, the Texas Department of Insurance said in early 2010 (Best's News Service, Feb. 8, 2010).

Texas Medical Liability Trust has been able to remain the largest carrier in Texas despite intense competition, according to BestLink. The company insures about 40% of actively practicing physicians that are not affiliated with a self-insured entity.

Texas Medical Liability insures physicians who are members of the Texas Medical Association. It is a policyholder-owned, not-for-profit health care liability trust specializing in providing medical professional liability insurance to Texas physicians. Its subsidiary, Texas Medical Insurance Co., insures physicians who aren't members of the medical association and staff members of its parent company's policyholders, BestLink said.

Texas Medical Liability Trust and Texas Medical Insurance Co. have current Best's Financial Strength ratings of A (Excellent).

(By Marie Suszynski)