The Doctors Company to Acquire Hospitals Insurance Company

TigerRisk Capital Markets & Advisory is acting as financial advisor to The Doctors Company

Transaction Overview

The Doctors Company (“TDC”) announced an agreement to acquire Hospitals Insurance Co., Inc. (“HIC”)

  • For a total consideration of $650 million

HIC is a leading medical professional liability (“MPL”) insurer focused in New York state

  • Third largest MPL insurer in New York state with a 13% market share; 10th largest in the U.S.(a)
  • Ownership group consists of three leading academic medical centers in New York
    • Mount Sinai Health System, Montefiore Health System and Maimonides Medical Center
  • Over $225m of LTM DPW and $592mm of statutory surplus as of 9/30/18

TDC is the nation’s largest physician owned medical malpractice insurer

  • Second largest medical professional liability insurer in the country in 2017 with ~$700mm of DPW(a)
  • Over 80,000 members across the country
  • Strong capital position with $4.8bn of total assets and $2.1bn of statutory surplus as of 9/30/18
  • AM Best A (Excellent) and Fitch A (Strong) financial strength ratings

Transaction is subject to customary closing conditions including regulatory approvals

  • Expected to close in 2019

TigerRisk Capital Markets & Advisory Role

TCMA acted as financial advisor to The Doctors Company; key TCMA responsibilities included:

  • Assisted in valuation analysis
  • Conducted business and financial due diligence
  • Advised on the structuring and negotiation of the transaction terms
  • Provided objective advice and acted as a sounding board to TDC throughout the process

TCMA is providing a Fairness Opinion to The Board of Directors of The Doctors Company