Coverys and Global Insurance Management Company (GIMC), both in the medical professional liability sector, have entered into a merger agreement whereby Coverys’s ProMutual Group will acquire GIMC.
The acquisition will expand Coverys’s portfolio of professional liability insurance and risk services for medical practitioners and healthcare systems, and is due to be complete in Q4 this year.
GIMC and its insurance subsidiary, Healthcare Underwriters Group, were founded in 2003 to bring long-term availability, predictability and stability to the marketplace in Florida, Ohio and Kentucky. Since then it has also expanded into Texas, Indiana and Nevada.
The combination of the two companies will strengthen GIMC’s ability to offer “superior products and services” to a core group of hospital and physician policyholders, the firms said.
Commenting on the merger, Gregg Hanson, CEO and president of Coverys, said: “GIMC brings knowledge and experience in the marketplace, providing Coverys the opportunity to further expand our footprint into Florida and Kentucky as well as increase our market share in Ohio.”
“Coverys policyholders benefit from the group’s A rating with A.M. Best and, through this acquisition, we will seek to offer Healthcare Underwriters Group policyholders the same strength and protection.”
Joshua Salman, CEO and president of GIMC, added: “GIMC policyholders will benefit from this acquisition by being a part of a larger healthcare professional liability group with a greater level of financial stability and greater access to enhanced products and services, and the ability to issue policies in all 50 states. GIMC shareholders will receive significant value for the business we have built since 2003.”
Sherman & Company LLC served as financial advisor and Skadden, Arps, Slate, Meagher & Flom LLP served as legal advisor to Coverys, while Sandler O'Neill + Partners, L.P. acted as exclusive financial advisor and Thompson Hine LLP served as legal advisor to GIMC.
