Ryan Crawford named new president and Chief Executive Officer of Constellation
March 18, 2021
Constellation, Inc. announced yesterday that Ryan Crawford, currently Constellation’s senior vice president of insurance operations, will succeed Bill McDonough as the company’s president and chief executive officer effective June 1, 2021. Crawford has also been elected to Constellation’s board of directors.
McDonough, currently Constellation’s president and chief executive officer, will retire and resign his seat on the board of directors effective June 1.
“I am delighted that the board of directors has named Ryan as my successor and believe he is the ideal choice,” McDonough said. “He has been a great leader and a valued partner in building and advancing Constellation’s long-term strategy. Since joining Constellation in 2017, he has held a variety of positions, helped build talent and capabilities, and strengthened our business. His passion and commitment to our mission and values will serve policyholders well.”
“This announcement follows a well-planned and thoughtful succession process,” said Sue Crook, MD, Constellation board chairman. “Ryan Crawford is a proven leader and we are excited about his ability to continue to help Constellation deliver on its vision, strategy and unwavering service to our customers. The board looks forward to working with Ryan in his new capacity.
“At the same time, we want to extend our profound thanks to Bill for his exceptional performance as CEO over the last 13 years. It has been a period of significant growth, change, and strategic development for our company. During Bill’s tenure, Constellation has grown from $134 million to more than $183 million in written premium, with our state presence increasing from 10 states to 50. It has developed from a single insurance entity to a mutual holding company with multiple brands (MMIC, UMIA, Arkansas Mutual) and entities (MMIC Risk Retention Group, Inc., Constellation New Ventures, LLC, Constellation Captive Solutions, LLC, Aspect Re SP). With Bill’s leadership, we have nearly doubled our consolidated assets, to more than $976 million, and increased our members’ surplus by 128%, to $406 million.”
AM Best Affirms Credit Ratings of ProAssurance Group Members and ProAssurance Corp.
March 17, 2021
AM Best has affirmed the Financial Strength Rating (FSR) of A (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of "a+" of the members of ProAssurance Group. The outlook of the FSR is stable while the outlook of the Long-Term ICR is negative. Concurrently, AM Best has affirmed the Long-Term ICR of "bbb+" and the Long-Term Issue Credit Ratings (Long-Term IR) of ProAssurance Corporation (PRA) (headquartered in Birmingham, AL). The outlook of the Credit Ratings (ratings) is negative. All companies are indirect subsidiaries of PRA. (See below for a detailed listing of the companies’ ratings.)
The ratings of ProAssurance Group reflect its balance sheet strength, which AM Best assesses as strongest, as well as its adequate operating performance, favorable business profile and appropriate enterprise risk management (ERM).
Risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), remains at the strongest level, but has declined in recent years. The group’s adequate operating performance assessment reflects a deterioration in underwriting performance in its medical professional liability (MPL) business in recent accident years and calendar years with results that no longer outperform industry averages. The management team has taken corrective actions, including the implementation of significant rate increases and re-underwriting the entire book of business. The group’s 2020 operating results improved over 2019; however, the effects of a large national MPL account activating a tail policy while non-renewing with ProAssurance largely muted this improvement. The same large national MPL account contributed $51 million in losses to ProAssurance’s 2019 results.
The ratings also consider the ProAssurance Group’s market position as one of the leading MPL insurers in the United States, as well as its diversification across multiple disciplines, geographic areas and in its other lines of business. The planned NORCAL Group (NORCAL) acquisition will likely increase the group’s operational scale and strengthen its market position in the long term. These ratings also acknowledge the depth and breadth of the group’s ERM programs and policies.
The negative Long-Term ICR outlook reflects the decline in risk-adjusted capitalization, as measured by BCAR, driven by lower underwriting profits and reduced embedded equity in loss reserves. Uncertainty with regards to reserve development, as well as the execution risks associated with the planned acquisition of NORCAL, which is expected to close in the second quarter of 2021, and the ensuing integration of the acquired entity also are factors in the negative outlook.
The FSR of A (Excellent) and the Long-Term ICRs of "a+" have been affirmed with a stable FSR outlook and a negative Long-Term ICR outlook for the following members of the ProAssurance Group:
- ProAssurance Casualty Company
- ProAssurance Indemnity Company, Inc.
- ProAssurance Specialty Insurance Company, Inc.
- Medmarc Casualty Insurance Company
- Noetic Specialty Insurance Company
- Podiatry Insurance Company of America
- ProAssurance American Mutual, A Risk Retention Group
- Allied Eastern Indemnity Company
- Eastern Advantage Assurance Company
- Eastern Alliance Insurance Company
The following Long-Term IRs have been affirmed with negative outlooks:
--"bbb+" on $250.0 million 5.30% 10-year senior unsecured notes, due 2023
The following indicative Long-Term IRs under the shelf registration have been affirmed with negative outlooks:
-- "bbb+" on senior unsecured debt
-- "bbb" on senior subordinated debt
-- "bbb-"on preferred stock
LAMMICO Named a ‘Best and Brightest Company to Work For’
March 5, 2021
LAMMICO was named one of the “101 Best and Brightest Companies to Work For” by the National Association for Business Resources, which recognized the winning companies in The Wall Street Journal. The 101 national winners were identified as organizations that deliver exceptional human resource practices and an impressive commitment to their employees. The companies display a commitment to excellence in operations and employee enrichment that leads to increased productivity and financial performance.
Potential honorees were assessed by an independent research firm and scored based on regional data of company performance and a set standard across the nation. Organizations were evaluated on categories such as communication, work-life balance, employee education, diversity, recognition, retention and more.
The “Best and Brightest Companies to Work For” winners will be honored at the Illuminate Business Summit on March 24-26 in Dallas. During the Illuminate Business Summit, LAMMICO and the other honored companies will be celebrated for demonstrating exceptional innovative human resource practices and setting high standards for all businesses.
“Receiving this national honor is a testament to the LAMMICO culture and the dedication of its employees,” said J. Michael Conerly, MD, LAMMICO president and chief executive officer. “I couldn’t be more proud of this team and this company and all we do to serve the healthcare providers we insure.”
NORCAL Mutual Begins Solicitation of Policyholders in Proposed Demutualization
March 5, 2021
The board of directors for NORCAL Mutual has begun solicitation of policyholders to vote on NORCAL’s plan to convert from a mutual company to a stock company and to elect the form of payment they wish to receive if the conversion occurs.
On Feb. 20, 2020, ProAssurance Corp. and NORCAL Group announced the signing of a definitive agreement under which NORCAL would become a part of ProAssurance in a $450 million transaction following its demutualization. The demutualization and the acquisition agreement are mutually contingent and subject to required regulatory and policyholder approvals.
As part of this process, ProAssurance’s transfer agent Computershare has mailed documentation and materials to NORCAL’s eligible policyholders. Further, ProAssurance has begun solicitation of policyholders who elect to receive NORCAL stock in the conversion, asking them to respond to the tender offer and agree to sell those shares on the terms of the offer. Policyholders who elect NORCAL stock and tender it to ProAssurance will receive their allocated share of the $450 million cash transaction proceeds and be eligible for a share of Contingent Consideration in an amount of up to $150 million, depending upon development of NORCAL’s ultimate net losses between Dec. 31, 2020, and Dec. 31, 2023.
Eligible NORCAL policyholders can visit https://norcalconversion.com using login credentials provided in the documents mailed by Computershare, wherein they will be able to cast their vote on NORCAL’s Plan of Conversion and elect their desired form of payment.
The general public may visit https://www.norcal-group.com/pra for copies of documents and more information about the proposed transaction.
Clifton P. Render Joins Integris Group as New Director of Information Technology
March 4, 2021
Integris Group, formerly named CMIC, announced that Clifton P. Render has joined the company as its new director of information technology.
“Clif’s experience working with enterprise architecture within the MPL industry will be a great asset to the company,” said Michael G. Roque, chief operating officer of Integris Group. “His success in managing various projects, while balancing both business and IT goals, will prove beneficial to our ongoing technology initiatives. We look forward to his insights into the department and having his strategic leadership within the company.”
Render has more than 20 years of information technology experience. Most recently, he served as director of enterprise architecture and corporate development at ProAssurance Corp. Prior to that, Render held a variety of leadership positions in the technology field, spanning a variety of industries, including multiple companies in the healthcare sector.
The Doctors Company Foundation Seeks Patient Safety Grant Proposals
February 24, 2021
The Doctors Company Foundation announced that it is accepting grant proposals through March 22, 2021, for innovative patient safety projects. Each year, the Foundation supports patient safety education for healthcare professionals and patient safety research with clinically useful applications by funding projects aimed at reducing or eliminating risk of adverse events.
“This year in particular, we welcome proposals for projects that focus on telehealth, diagnostic error and COVID-19,” said William C. Rupp, MD, Foundation chairman. “These grants reflect our mission to advance the practice of good medicine and support our commitment to serving those who provide healthcare.”
The first step in the application process is submission of a letter of intent. Then, the Foundation will ask selected applicants to submit a full proposal. Eligibility criteria and application guidelines can be found on the Foundation website.
In its 13-year history, the Foundation has provided over $6 million in grants for patient safety research and educational training. Grant recipients include the National Patient Safety Foundation (now the Institute for Healthcare Improvement) for developing guidelines on root cause analysis, Northwestern University for The Effect of Clinical Reasoning Feedback on Hospital Medicine Physicians and Residents, and the University of California, San Francisco, for The Family Input for Quality and Safety Study.
The Foundation approved the following grants in 2020:
• Icahn School of Medicine at Mount Sinai and NYC Health + Hospitals:
An Intuitive, Nonintrusive Approach to Reduce Patient Harm from Inappropriate Dosing of High-risk Drugs in Older Adult Patients Across an Urban Safety Net Hospital System.
• Department of Emergency Medicine, University of Michigan Medical School:
Immersive Virtual Reality Environment for Training Acute Care Teams (iREACT).
• Anesthesia Patient Safety Foundation:
Perioperative Deterioration: Early Recognition; Rapid Response; and the End of Failure-to-Rescue.
The MPL Association Appoints Three New Board Officers
February 12, 2021
The Medical Professional Liability (MPL) Association, the international organization representing the MPL insurance community, has appointed Sue A. Crook, MD, Constellation/MMIC, Agustin Montalvo, SIMED, and Mark E. Reynolds, the Risk Management Foundation of the Harvard Medical Institutions, Inc. (CRICO), to serve on the Association’s Board of Directors. The new appointments will fill three recently vacated positions.
Sue A. Crook, MD, FACR, is a partner in Midwest Radiology in Minnesota. She is also the chair of the Board of Directors of Constellation/MMIC. Dr. Crook is a Fellow of the American College of Radiology and a member of the Minnesota Radiological Society. She holds a B.S. from the University of Wisconsin and received her medical degree from the University of Minnesota Medical School. Between 2017 and 2019, Dr. Crook participated in the MPL Association Fellows Leadership Program.
Agustin L. Montalvo is president of SIMED, the leading provider of medical malpractice insurance for physicians in Puerto Rico. Prior to joining SIMED in 2015, Mr. Montalvo served as vice president of Property & Casualty at Aon Risk Solutions, and as senior vice president & COO at AIG Insurance Company in Puerto Rico. Mr. Montalvo attended the University of Central Florida, earning a B.S. in industrial engineering.
Mark E. Reynolds has been president and CEO of the Risk Management Foundation of the Harvard Medical Institutions Inc. (CRICO) since 2012. The CRICO insurance program serves all of the Harvard medical institutions and its affiliates, providing coverage to 32 hospitals, 15,500 insured clinicians, more than 325 other healthcare organizations, and more than 135,000 other clinicians and employees. Mr. Reynolds has 30 years of experience in the healthcare and insurance industries. Prior to CRICO, he was CEO of Neighborhood Health Plan of Rhode Island, among the nation’s top 10 Medicaid health plans. Mr. Reynolds attended Swarthmore College and MIT.
“These distinguished leaders bring considerable knowledge and unique perspectives to the MPL Association,” said MPL Association Chair James Q. Swift, DDS. “We are fortunate to have them serve on the Association Board and look forward to their contributions as we work to advance the mission of the organization and its members.”
Each of the new Board members will serve on an interim basis until their nominations are presented to the Association membership in May 2021 for approval to serve three-year terms.
Coverys Announces Retirement of CEO and President Gregg Hanson, COO Joseph Murphy to Takes Helm Effective April 1, 2021
February 5, 2021
Coverys announced that its president and chief executive officer Gregg L. Hanson will retire, effective March 31, 2021. As part of this planned transition, the company’s board of directors named current chief operating officer Joseph G. Murphy will succeed Hanson as CEO and President, effective April 1, 2021.
After 25 years in the industry, Hanson began his career with Coverys in 2000 as chief underwriting officer. He was promoted to president and CEO in 2012.
“It has been a pleasure, both personally and professionally, to have worked beside Gregg over the course of my time with Coverys,” said Brenda E. Richardson, MD, board chair. “The board and I recognize that, under Gregg's leadership, Coverys has grown into the successful international medical professional liability company that it is today. We wish Gregg and his wife, Deb, much happiness in this next phase of their lives.”
Murphy joined Coverys as chief operating officer in 2015 and has played a pivotal role in the execution of Coverys’ long-term strategic plan. He has overseen underwriting, business development and distribution, business analytics and risk management, claims, and Coverys Insurance Services.
“Joe came to Coverys with a wealth of knowledge and experience. He has proven to be a great asset as COO, so this was a natural transition and a longstanding part of Coverys’ succession planning process. The Board is confident of our continued success with Joe leading Coverys into the next chapter,” Richardson said.
Marsh Appoints Gisele ‘GiGi’ Norris U.S. Healthcare Practice Leader
February 3, 2021
International insurance broker and risk advisor Marsh announced today that Gisele “Gigi” Norris has joined the firm to lead its US HealthCare Practice. In this role, Norris is responsible for the delivery of healthcare risk management knowledge, expertise and transactional services to clients across the U.S.
Norris joins Marsh from Aon, where for the last 20 years she served as the Western region HealthCare Leader and Pandemic Task Force co-leader. Based in San Francisco, Norris reports to Jeffrey Alpaugh, Marsh’s US and Canada Growth and Industry Leader.
Norris brings to the role more than 25 years of experience creating innovative risk solutions to help health care providers and payers achieve organizational and financial objectives. She also holds a doctorate in public health, with a concentration in epidemiology, and has provided counsel on prevention and mitigation of infectious disease risk to a diverse range of industries.
“Gigi joins the firm at a critical time for the healthcare industry as the pandemic has dramatically altered the risk profile of traditional health care providers,” Alpaugh said. “Her proven track record of providing strategic risk consulting and advice to some of the nation’s largest and most complex healthcare companies, coupled with her epidemiological expertise, will further help our clients confront today’s healthcare challenges.”
“Healthcare companies today need a risk advisor that can deftly identify emerging risks, assist in re-prioritizing risks and proactively bring risk management solutions to the table,” Norris said. “Marsh’s dedicated team of healthcare professionals coupled with its data and analytics are second to none in the industry. I’m excited to join the firm and lead this distinguished group.”
TDC Group Promotes Robert White to Chief Operating Officer
January 19, 2021
TDC Group announced today that Robert E. White Jr. has been promoted to chief
operating officer (COO), reporting to Richard E. Anderson, MD, FACP, chairman and CEO.
In this role, White will oversee the operations of the four business units that make up TDC Group: The Doctors Company, Healthcare Risk Advisors, TDC Specialty Underwriting and Medical Advantage.
White, former president of FPIC Insurance Group, has more than 50 years of experience in the insurance industry. He joined The Doctors Company with the acquisition of FPIC in 2011, and he served most recently as executive vice president, medical professional liability, at The Doctors Company.