Atlanta, Georgia-based MagMutual Insurance Company has announced it will acquire Trenton-based MDAdvantage Insurance Company of New Jersey. The acquisition is subject to regulatory approval from the New Jersey Department of Banking and Insurance (DOBI) and approval of MDAdvantage Holdings, Inc., shareholders. The transaction is expected to close as soon as possible following the shareholder vote and regulatory approvals.
Since the inception of MDAdvantage® in 2002, the company has established itself as a leading medical professional liability (MPL) insurer in New Jersey. The company focuses on protecting the professional and financial well-being of its insured physicians with market-leading policy forms, claims defense practices and risk management services. Together, MagMutual and MDAdvantage support physician initiatives that increase patient safety and minimize the risks of liability.
“As we got to know MDAdvantage and its leadership, it became clear that our organizations share the same mission-based, policyholder-centric purpose. We both are committed to providing physicians and hospitals with the best insurance and support possible so they can concentrate on patient care,” said incoming MagMutual Executive Chairman William Kanich, MD, JD. “Joining forces will expand the possibilities for both companies and help us continue to grow, innovate and successfully protect the healthcare community we serve.”
MDAdvantage plans to continue to operate under its current name and maintain the company’s presence in New Jersey, serving as an important hub for MagMutual in the Northeast. Due to MDAdvantage’s strong relationships with policyholders and agents, MagMutual anticipates that management and front-end operations will remain in place, since they are key to continued service and support as the combined companies offer additional healthcare liability products in the marketplace.
“Becoming part of the MagMutual family marks the beginning of an exciting new chapter for MDAdvantage and its insured physicians,” said Patricia A. Costante, chairman and CEO of MDAdvantage Insurance Company. “We will build on the strong foundation established over the past 20 years with a partnership that will further our legacy of service to physicians and the healthcare community. In addition, we will be able to offer even more value to physicians through MagMutual’s comprehensive product suite. I look forward to the opportunities this partnership will provide to our physicians, broker partners and company.”
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