FPIC Insurance Group, Inc. (FPIC), a professional liability company serving the health care industry, has signed a definitive agreement to acquire Anesthesiologists' Professional Assurance Company (APAC). FPIC will purchase APAC for $18.0 million to be paid in a combination of cash, FPIC stock and assumption of debt. The transaction is subject to the receipt of regulatory approval. FPIC also announced that it will acquire a 9.9% interest in American Professional Assurance Ltd., an affiliate of APAC, for $5.5 million in cash.
APAC, headquartered in Miami Beach, Florida, will become a wholly owned but separately run subsidiary of FPIC. APAC will retain and maintain the same basic organization, structure, management and philosophy that made it successful for the past 14 years. The same management team, including its Board and Committee structure, will stay in place and continue to run the Company as in the past, as a company run by and for anesthesiologists.
Chairman of APAC, Frank Moya, M.D., a past president of the American Society of Anesthesiologists, will join the Board of Directors of FPIC Insurance Group, Inc. and the Board of Directors of its insurance subsidiary Florida Physicians Insurance Company. FPIC currently insures over 7,000 healthcare providers throughout the Southeast. This merger increases the total number of policyholders to over 7,700. APAC has policyholders in over 30 states and intends to aggressively market FPIC products and services in these states.
William R. Russell, president and CEO of FPIC, says, "This acquisition is a strategic step in profitably expanding and diversifying our product line into other areas. APAC is the acknowledged expert in the field and is known for its insistence on providing quality service and risk management. Moreover, we expect this transaction to be immediately accretive to earnings per share."
Frank Moya, M.D., chairman of APAC, comments, "The merger of APAC with this excellent insurance company, FPIC, is another great milestone in the highly successful 14 year history of APAC. This combination will result in strategic advantages and benefits to both parties and we can all take great pleasure and pride in our accomplishments."
FPIC Insurance Group, Inc., through its subsidiary companies, is a leading provider of professional liability insurance for physicians, dentists, hospitals and other healthcare entities. Products are available directly, or through independent agents and brokers. FPIC also provides third-party administration services to entities outside the healthcare marketplace.