Bill Passolt to Receive 2021 MPL Association Award of Excellence in Honor of Peter Sweetland
May 10, 2021
The Medical Professional Liability (MPL) Association today announced that William C. Passolt of OMS National Insurance Company (OMSNIC) will be the recipient of the 2021 Award of Excellence in Honor of Peter Sweetland. Passolt is being honored for his outstanding contributions and longtime dedication to the MPL insurance community, the MPL Association and healthcare professionals. The MPL Association is the international organization representing the medical professional liability insurance community.
Passolt is president and CEO of both OMSNIC and its subsidiary, Fortress Insurance Co. He joined OMSNIC in 1992 as its vice president of finance. Prior to joining the company, he was a senior manager with Arthur Andersen LLP. Passolt is a certified public accountant and a member of the American Institute of Certified Public Accountants. He has served as a director of the OMS Foundation since 2015 and as a director of the Eastman Dental Center Foundation since 2013. In 2019, Passolt was made an honorary fellow of the American Association of Oral and Maxillofacial Surgeons, the highest honor awarded to a nonmember.
Over the past 20 years, Passolt has served in various leadership roles at the MPL Association, including Section Chair of the Technology, Human Resources, and Finance Workshop and Leadership Forum. He has participated in the MPL Conference Committee, CEO Section, and the Regional Member Roundtable. In 2011 and 2016, Passolt received the Leadership Award from the PIAA (now the MPL Association).
“We are extremely pleased to honor Bill for his exceptional dedication to the MPL industry and this Association. His unwavering support and active commitment to the Association exemplifies the spirit of this award," said Brian K. Atchinson, president and CEO of the MPL Association. "We are grateful for his service.”
“Bill has shown a significant commitment to advancing the interests of policyholders at OMSNIC,” said Dr. James Q. Swift, chair of the MPL Association Board of Directors and director and chair of OMSNIC. “He has successfully led OMSNIC while preserving its mission of serving and protecting oral and maxillofacial surgeons and dental professionals enabling them to provide safe patient care.”
The MPL Association Award of Excellence in Honor of Peter Sweetland, established in 1993 by MPL Association’s Board of Directors, was created in honor of the late Peter Sweetland, one of the MPL Association’s chief architects and most fervent supporters. The award recognizes an individual who has provided exemplary service to the industry and to the MPL Association, and who epitomizes the high ideals and ethics for which Peter Sweetland stood.
ProAssurance Completes NORCAL Transaction
May 6, 2021
ProAssurance Corp. announced its acquisition of NORCAL Mutual Insurance Co. was completed May 5, 2021. NORCAL’s members approved the transaction at a special meeting on April 26.
Under terms of a previously announced agreement, NORCAL became part of ProAssurance following its demutualization. Through its tender offer to NORCAL policyholders who elected to receive stock in the conversion of NORCAL Mutual, ProAssurance has acquired over 98% of the stock of NORCAL Insurance Co., the successor to NORCAL Mutual. The base consideration for the transaction at closing is $441 million.
“The completion of the NORCAL transaction marks a significant milestone in our Mission to Protect Others,” said Ned Rand, ProAssurance Corp. president and chief executive officer. “NORCAL is one of the leading writers of medical professional liability insurance in the country. We believe their contributions to our customers and culture will expand our product capabilities with broader geographic scale and efficiencies and will support a true nationwide platform to deliver value to our customers and stakeholders. We are delighted to welcome NORCAL’s employees and policyholders to our family.”
Sandra Beretta, MD, immediate past chairperson of NORCAL’s Board of Directors, said, “I am delighted that NORCAL is now officially partners with such an impressive organization. NORCAL has been a stable, long-time participant in the medical professional liability insurance marketplace, and the combination with ProAssurance will bring policyholders further confidence, knowing NORCAL will be able to offer them an even higher level of financial security and service.”
“ProAssurance’s financial strength, diverse risk transfer capabilities, success in integrating acquisitions, and — most importantly — its focus on policyholder success were the key factors in the decision to join with them,” she continued. “NORCAL has protected physicians and other healthcare professionals for more than four decades. As part of the ProAssurance family, NORCAL has increased its ability to serve its policyholders for many years to come.”
Policyholders who elected to receive NORCAL stock and tender it to ProAssurance will receive their allocated share of the converted company’s equity in cash, and are eligible for a share of Contingent Consideration in an amount of up to approximately $83 million depending upon development of NORCAL’s ultimate net losses between Dec. 31, 2020, and Dec. 31, 2023. ProAssurance is funding the transaction with $248 million of cash on hand, and NORCAL will pay $2 million to policyholders who elected to receive the discounted cash option for their allocated share of the converted equity. The remainder of the base consideration, approximately $191 million, is in the form of contribution certificates issued to certain NORCAL policyholders in the conversion of NORCAL Mutual, and those instruments are an obligation of NORCAL Insurance Co. Base consideration and maximum contingent consideration are subject to non-material change as the equity allocation is reviewed and finalized post close.
Curi Announces New Chief Operating Officer for Insurance Solutions Business
April 28, 2021
Curi today announced the appointment of Brad Diericx to chief operating officer of the company’s Insurance Solutions business. In this new role, Diericx will lead the core elements of Curi’s long-standing insurance business, including its medical professional liability offering. Diericx joins Curi from HDI Global, the German international insurance group, where he served most recently as president and chief financial officer of U.S. operations. With more than 26 years of experience in the insurance space, Diericx will be focused on maintaining and growing the company’s insurance footprint and portfolio.
“We are excited to have a seasoned leader like Brad at the helm of our insurance business,” said Robert Schaaf, MD, Curi board chairman. “Brad’s experience in the insurance space makes him uniquely qualified to serve Curi’s members and member practices — all while maintaining focus on the financial discipline that has underpinned Curi’s insurance success for decades.”
“With Brad, we are gaining a strategically creative and talented individual who will be sharply focused on providing extraordinary service to our members,” said Jason Sandner, incoming Curi CEO. “I am thrilled to have him join our talented Insurance Solutions team and know he will play an integral role in delivering on our enterprise-wide mission of helping physicians in medicine, business, and life.”
“I have watched Curi’s growth from afar for many years and am proud to be joining this team at such a pivotal time for both Curi and the physician community at large,” said Diericx. “Physicians and their practices are facing more challenges than ever before, and I look forward to working with the Insurance Solutions team to ensure we’re continuing to meet the needs and exceed the expectations of those we serve.”
AM Best to Host Webinar on the State of the Medical Professional Liability Market
April 19, 2021
AM Best will host a complimentary webinar exploring the state of the medical professional liability (MPL) insurance market on Thursday, May 13, 2021, at 10:00 a.m. (EDT). AM Best analytic personnel and insurance industry leaders will examine MPL insurers’ underwriting and operating results, pandemic-related challenges in the healthcare industry, and regulatory and industry developments.
AM Best has a negative market segment outlook on the MPL insurance market, as explained in AM Best’s annual report on MPL insurers. This segment could be facing one of its most difficult periods in the last decade or more, partly due to the COVID-19 pandemic. During the event, the panel will discuss the present day and potential future impacts of the pandemic on MPL insurers.
Register now at www.ambest.com/webinars/MPLI21.
· Sharon Marks, associate director, AM Best;
· David Blades, associate director, AM Best;
· Brian Atchinson, president & chief executive officer, MPL Association;
· Timothy J. Kenesey, president & chief executive officer, MedPro Group;
· William J. McDonough, president & chief executive officer, Constellation.
Attendees can submit questions during registration or by emailing email@example.com. The event will be streamed in video and audio formats, and playback will be available to registered viewers shortly after the event.
South Carolina Medical Malpractice Association to Host Mandatory Pre-Bid Conference for Submitting a Proposal in Response to SCMMA RFP No. 2021-001
April 14, 2021
To All Interested Persons:
The South Carolina Medical Malpractice Association (SCMMA) is hosting a mandatory pre-bid conference for all persons interested in submitting a proposal in response to SCMMA RFP No. 2021-001 (announcement and RFP can be found here for more details). The mandatory pre-bid conference will be held on April 19, 2021, at 1:00 p.m. at the offices of the South Carolina Department of Insurance in Columbia, South Carolina. Anyone interested in submitting a proposal must attend the conference. This will be an in-person meeting.
Please contact John Tiencken, Esquire, at firstname.lastname@example.org if you have any questions or concerns.
The SCMMA is organized as a nonprofit corporation established under South Carolina law for the purpose of assuring the availability of medical malpractice insurance and other professional liability coverage to licensed South Carolina health care providers on a self-supporting basis. The Association provides medical malpractice insurance coverage in South Carolina to those health care providers that cannot find coverage in the voluntary or private market.
Curi Enhances Practice Advisory Services with Acquisition of Healthcare Analytics Firm Arrowlytics
April 7, 2021
Curi today announced that it has reached an agreement to acquire healthcare data analytics and advisory company Arrowlytics. Building on an existing five-year relationship between the two organizations, the acquisition will strengthen Curi’s suite of advisory services for physicians and their practices by adding a data-driven solution to help their businesses thrive.
Arrowlytics’ leading product, Aspire, helps healthcare organizations by consolidating and converting their data into knowledge. The Aspire platform pulls critical data from disparate sources into one system, allowing practices to monitor and improve results across a variety of performance categories — from online reputation management, to practice growth and optimization, and beyond. Coupled with consultative support from a team of seasoned healthcare industry experts from both Arrowlytics and Curi, the solution will allow practice leaders to make more informed decisions to assess, adjust and ultimately grow their business.
“Running a medical practice gets more challenging every year, and we have been proud to help our member physicians and their practices navigate these challenges for more than four decades,” said incoming Curi CEO Jason Sandner. “At Curi, we are always looking for new ways to support our members, and bringing the team and solutions from Arrowlytics into the Curi family will allow us to offer new data-centered solutions and services to the healthcare leaders that we serve.”
According to Curi, the Arrowlytics Aspire platform will support the advisory products and services that the malpractice insurer has been actively developing with input from its member community for years — from enhancements and risk management to health policy guidance, practice retirement plan solutions, well-being offerings and more.
“Arrowlytics was created by a team of healthcare industry veterans to help healthcare organizations optimize their businesses, so they can focus on caring for their patients,” said Arrowlytics CEO Steve Hendrick. “We look forward to continuing our commitment to this effort as part of Curi, a company that shares our dedication to supporting physicians and their practices.”
The transaction between Curi and Arrowlytics closed on April 1, 2021. For more information, visit curi.com/aspire-platform.
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.