MMIC, the largest policyholder-owned medical liability insurance (medical malpractice) company in the Midwest, has acquired Utah Medical Insurance Association (UMIA).
The deal expands MMIC's geographic footprint to four additional states: Idaho, Utah, Montana and Wyoming, and expands UMIA's portfolio of products to hospitals, long-term care facilities and large health systems.
MMIC president and CEO Bill McDonough said the deal is symbiotic. "There are benefits to this merger on both sides," he said. "In financial terms, our combined surplus will benefit us both, as will the benefits derived from added scale and efficiency."
The combined company surplus is estimated at more than $350 million, and net written premium, premium-to-surplus ratio and loss ratio will improve, increasing the financial stability for both organizations.
McDonough says he anticipates a smooth integration due to the similar nature of the two companies. "We are both policyholder-owned companies with the same mission: to offer products and services that improve patient care," he said.
Another factor that helped seal the deal is that UMIA will maintain its operations in Utah in order to provide a local presence and it will maintain its current branding and a separate advisory board of directors.
Martin Oslowski, UMIA president and CEO, said that UMIA is excited to join forces with MMIC. “The UMIA board believes that UMIA’s policyholders will benefit from an acquisition by a larger, better capitalized company with a similar physician-focused culture and from MMIC’s leading physician litigation support program and health IT expertise,” he said.
“We also think that UMIA’s experience can enhance some of MMIC's existing programs, such as physician consulting services. Together we can create stronger systems and processes and drive efficiencies.”
MMIC, Utah Medical Insurance Association (UMIA), health IT