Berkshire Hathaway's MedPro Group to Purchase PLICO Insurance

PLICO, the Oklahoma State Medical Association (OSMA), and Berkshire Hathaway's MedPro Group (MedPro) reported the signing of definitive agreements for the sale of PLICO to MedPro.

According to a media release, the boards of each have approved OSMA's sale to MedPro of 100 percent ownership of PLICO in an all- cash transaction, which is subject only to customary closing conditions and regulatory approvals and is expected to close in the third quarter.

"Joining Berkshire Hathaway's MedPro Group emboldens PLICO's expansion efforts by providing additional opportunities not available to us before," said Carl Hook, M.D., President and CEO of PLICO. "MedPro shares our commitment to always put the insured first, and this transaction will give PLICO the unquestioned financial strength and additional product options to better serve local healthcare providers and entities without sacrificing our reputation for high-quality customer service and relational focus. Both PLICO and MedPro insureds will benefit greatly from our collaboration, which leverages the best combination of national resources with local expertise and service."

Based in Oklahoma City, PLICO serves approximately 2200 healthcare providers in Oklahoma; it has annualized gross written premiums of about $30 million and had statutory surplus of over $60 million at year-end 2014. PLICO's principal operations will remain in Oklahoma City, where it was founded in 1979. PLICO and MedPro will together work to ensure all policyholders continue to receive the best service and solutions.

"This is a great opportunity for the Oklahoma State Medical Association and our physicians," said Woody Jenkins, M.D., President of the OSMA. "A true win-win, it will bring the OSMA resources to grow and expand our mission while also giving PLICO greater influence and support. There really could not be a better scenario for all parties."

Tim Kenesey, MedPro's President and CEO, said: "This is a win for PLICO policyholders and distribution partners, who will continue to benefit from the same terrific local service long-provided by PLICO, but soon with MedPro's industry-leading financial rating and additional product offerings. It is also a win for the OSMA, who enjoyed an efficient transaction process with a trustworthy purchaser and who will continue to support PLICO as its exclusively endorsed professional liability carrier. Finally, it is a win for PLICO and MedPro, as we strengthen our business by serving the healthcare community in Oklahoma as a unified team."

Warren Buffett, Chairman of Berkshire Hathaway, added: "Over the last decade, we have acquired Medical Protective, Princeton and now PLICO, and we are absolutely delighted with each of these acquisitions. Today, our MedPro Group is not only the nation's leading healthcare liability company, providing peace of mind to the nation's healthcare providers, we are also now a favored solution for owners of healthcare liability insurers who seek the world's most stable home for their company and policyholders in a very unstable and changing healthcare landscape."

More information:

www.plico.com

www.medpro.com

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