(BRK.A), (BRK.B)
Berkshire Hathaway’s MedPro Group (MedPro) has announced the completion of its acquisition of Oklahoma City-based PLICO, which serves approximately 2,200 healthcare providers in Oklahoma, and is the largest healthcare liability insurer in Oklahoma.
The company notes that the transaction process – from signing to closing – took less than 60 days, and that the PLICO and MedPro teams have already begun working cohesively to serve Oklahoma healthcare providers.
PLICO’s principal operations will remain in Oklahoma City. Carl Hook, M.D., will remain as CEO while also serving as Chair of PLICO’s Advisory Board, and long-time PLICO executive Sherry Hayworth will serve as President.
Founded in 1979, PLICO is the largest healthcare liability insurer in Oklahoma, and has annualized gross written premiums of about $30 million, and had a statutory surplus of over $60 million at year-end of 2014.
The “bolt-on” acquisition is only the second acquisition for MedPro since Berkshire Hathaway acquired it a decade ago.
PLICO is not currently rated by leading insurance rater, A.M. Best, but is expected to apply for financial strength ratings and be positioned to offer additional products and services.
Prior to the PLICO acquisition, Berkshire’s MedPro had $874 million in annual premiums and more than 140,000 customers.
© 2015 David Mazor
Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.