Michigan Physicians Mutual Acquires Alpha Advisors, Inc.

Michigan Physicians Mutual Liability Company (MPMLC) has acquired Alpha Advisors, Inc., a Chicago-based investment advisory firm. Alpha Advisors, formed in 1989, manages assets for insurance companies, including MPMLC's bond portfolio. Lawrence H. (Jim) Lucey, Alpha's president, had managed the MPMLC bond portfolio for five years prior to forming Alpha Advisors. Alpha is a registered investment advisor with the Securities & Exchange Commission under the Investment Advisers Act of 1940.

William B. Cheeseman, CEO of Stratton-Cheeseman Management Co., the management company for MPMLC, says, "This addition to MPMLC's corporate structure continues our strategic positioning for the future. It allows us to have closer control of our bond management and maintains continuity of style, which has achieved superior returns."

Prior to the acquisition, Alpha managed bond portfolios for seven life insurance companies, six property and casualty firms and one non-insurance related portfolio. Alpha has maintained all of its clients through the ownership change and continues to actively pursue additional bond management business.

"Investment management has been a very profitable business over many years and this will be a logical diversification for our Group," Cheeseman says.

Jim Lucey, who will continue as president of Alpha, says, "I have known the MPMLC management team and Board of Directors for fourteen years, and I can't think of a better partner for the challenges and opportunities ahead in the financial industry."

MPMLC has diversified in recent years to offer workers' compensation, medical liability for health care facilities, managed care liability and other coverages. Headquartered in East Lansing, MI, MPMLC and its subsidiaries Kentucky Medical Insurance Company and RML Insurance Company, have offices in Albuquerque, Chicago, Columbus, Ft. Lauderdale, Indianapolis, Lapeer, Las Vegas, Louisville, and Minneapolis.