New York State Department of Financial Services Approves Acquisition of Hospitals Insurance Company by the Doctors Company

ALBANY, New York, June 20 -- The New York State Department of Financial Services issued the following news release:

* * *

- Acquisition Strengthens New York's State-Regulated Medical Malpractice Insurance Market

* * *

Acting Financial Services Superintendent Linda A. Lacewell today announced that the Department of Financial Services (DFS) has approved the application of The Doctors Company (TDC), the largest physician-owned medical malpractice insurance company in the nation, to purchase Hospitals Insurance Company (HIC), from Maimonides Health Resources, Inc., Montefiore Medicine Academic Health System, Inc. and Mount Sinai Health System, Inc. for $638 million. TDC will also purchase the assets and liabilities of HIC's current manager, FOJP Service Corporation, from the sellers for $12 million.

"Taking into consideration the importance and current status of New York's medical malpractice market, DFS carefully reviewed this acquisition to protect HIC policyholders," said Acting Superintendent Lacewell. "The measured expansion of competition in the medical malpractice market by a DFS-regulated insurer is positive for doctors, and ultimately good for consumers."

"We are pleased the New York Department of Financial Services has given final approval for this important transaction. This enables us to deliver on our commitment to New York physicians and hospitals to provide expanded coverage options from a strong admitted carrier, and to build a mission-based platform to serve the medical professions. We look forward to the transaction closing on July 31, 2019," said Richard E. Anderson, MD, FACP, chairman and CEO of The Doctors Company.

Founded in 1976, TDC, a California-domiciled insurer authorized in New York, has more than $4.8 billion in assets, 80,000 members nationwide and a member surplus of approximately $2.1 billion. TDC also serves as the parent company for insurance service subsidiaries that provide a wide variety of additional insurance products and services.

DFS supervises and regulates the activities of more than 1,400 insurance companies with assets of more than $4.7 trillion and approximately 1,500 banking and other financial institutions with assets totaling more than $2.6 trillion. They include more than 130 life insurance companies, 1,300 property/casualty insurance companies, about 100 health insurers and managed care organizations, and 300,000 individual insurance licensees, 122 state-chartered banks, 80 foreign branches, 10 foreign agencies, 15 credit unions, 13 credit rating agencies, nearly 400 licensed financial services companies, and more than 9,600 mortgage loan originators and servicers.