A Berkshire Hathaway Inc. unit is set to purchase Medical Liability Mutual Insurance Co., further expanding billionaire investor and Chairman of Berkshire Warren Buffett’s superiority in the business of protecting dentists, doctors, mid-level providers and other healthcare personnel from lawsuits.
MLMIC is the biggest underwriter of medical professional liability insurance in the state of New York and will evolve from being policyholder-owned to a stock business, according to Berkshire’s National Indemnity unit on Monday. Berkshire did not disclose the terms of the deal, however, MLMIC stated that its policyholders’ surplus which is used to measure assets minus liabilities was valued at $1.8 billion as of December 31, 2015.
The agreement is expected to be closed in 2017, but Buffett said in a statement that acquiring a ‘gem of a company’ that has safeguarded New York’s medical authorities for over 40 years is worth waiting for.
KBW analysts estimate that Berkshire would control over 15% of the medical professional liability insurance market after the deal is completed.
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