Medical Mutual to Assume Policies from Healthcare Providers Insurance Exchange

RALEIGH, N.C., June 10, 2015 /PRNewswire-USNewswire/ -- Medical Mutual Insurance Company of North Carolina ("Medical Mutual"), a leading provider of medical professional liability for physicians in the Southeast, and Healthcare Providers Insurance Exchange ("HPIX"), a top ten insurer of physician commercial medical professional liability in the Mid-Atlantic area, today announced that they have signed a definitive agreement under which Medical Mutual will acquire the rights, title, interests in, and the policies of Healthcare Providers Insurance Exchange. Terms of the transaction were not disclosed.

"Joining Medical Mutual advances HPIX as the leading brand for Medical Professional Liability Insurance in the Mid-Atlantic and preserves the physician owned, customer centricity of HPIX's insurance platform," said Tom Gaudiosi, Vice Chairman and Chief Executive Officer of HPIX. "With so much insurance M&A focused on cost, this transaction is unique because it is precipitated by a strategy to build worth and unlock value for our current and future members. Through an intense and diligent search, we found Medical Mutual to be the most symbiotic and synergistic partner. There is an obvious fit between HPIX and Medical Mutual that will be apparent to our policyholders as we deliver tangible benefits that will ensure their long-term success."

"The addition of HPIX policyholders to Medical Mutual will provide benefits to both sides," said Dale Jenkins, Chief Executive Officer of Medical Mutual. "The partnership expands Medical Mutual's geographic footprint into the Mid-Atlantic States and continues the HPIX legacy of providing outstanding service, products, and resources to policyholders.  Medical Mutual and HPIX share a culture and philosophy focused on serving physician members."

Upon completion of the transaction, Medical Mutual will offer employment to a majority of current HPIX employees who are integral to the future growth and success of the organization. "We are delighted to welcome a very experienced and talented team of HPIX professionals, in addition to their clients, agents, and brokers, to Medical Mutual," said Jenkins.  "As we continue to witness the expansion and growth of regional physician practices throughout the country, we are excited to work with their agents and brokers to build upon the HPIX franchise and expand the reach of Medical Mutual into the Mid-Atlantic."

The closing of the acquisition is subject to approval by the Pennsylvania Insurance Department and North Carolina Department of Insurance, as well as other customary closing conditions.  Pending those approvals, the acquisition is expected to close later this year.

Sandler O'Neill + Partners, L.P. is acting as financial advisor and Wyrick Robbins Yates & Ponton LLP is serving as legal advisor to Medical Mutual.  Boenning & Scattergood is acting as financial advisor and Fox Rothschild LLP is serving as legal advisor to HPIX.

About Healthcare Providers Insurance Exchange

HPIX is a reciprocal insurance exchange and top ten provider of commercial medical professional liability insurance to health care professionals in its core markets of Pennsylvania, New Jersey, Maryland, and Delaware.  Founded in 2002, Healthcare Providers Insurance Exchange is headquartered in Philadelphia, PA, with an office in Harrisburg, PA. The employees of American Healthcare Providers Insurance Service Company, an attorney-in-fact acquired by HPIX in 2014, currently manage HPIX.

About Medical Mutual Insurance Company of North Carolina

Medical Mutual is a physician-owned provider of medical professional liability founded in 1975. Since its inception, Medical Mutual has promoted physician advocacy through its longstanding partnerships with organizations such as the North Carolina Medical Society.  The company protects over 10,000 physicians, has been rated "A" (Excellent) by A.M. Best for 12 consecutive years, and is a leading provider of medical professional liability insurance in its core markets.  In January of 2014, Medical Mutual converted its structure from a mutual to a stock insurance company and formed a mutual insurance holding company, Medical Mutual Holdings, in order to better maximize business opportunities and increase the overall value of membership in the company.

Media Contacts:

For Medical Mutual:Marina CalabreseAssistant Vice President, Communications
919.878.7507, [email protected]

For HPIX:Nicholas GaudiosiPresident, COO
215. 979.1520, [email protected]
OrDana KesslerMarketing Manager
215.979.1590, [email protected]

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SOURCE Healthcare Providers Insurance Exchange