FOR IMMEDIATE RELEASE
|MEDIA CONTACTS:||Sandy Knott||Jim Johnson|
San Francisco, CA and Overland Park, KS (November 4, 2016) – PPM Services, the holding company for Preferred Physicians Medical Risk Retention Group, Inc. (PPM), industry-leading provider of medical professional liability insurance for anesthesia practices, today announced the signing of a definitive agreement to be acquired by NORCAL Mutual Insurance Company (NORCAL). The acquisition of PPM Services will result in a partnership between NORCAL and PPM that will expand PPM’s anesthesia footprint and establish a Midwest presence to further support NORCAL’s national expansion.
"We are very pleased to be joining such a well-respected company as NORCAL, who shares our commitment to always putting the best interests of physician policyholders first,” said Steven Sanford, President and CEO of PPM. “PPM will now be able to leverage the considerable resources of NORCAL to further expand our anesthesia brand, better respond to changes in the health care environment and deliver additional value to our policyholders.”
Based in Overland Park, KS, PPM insures anesthesia practices exclusively. PPM’s offices will remain in the Kansas City metropolitan area, where it was founded in 1987. PPM Services will become a wholly owned subsidiary of NORCAL Mutual, while PPM and its policyholders will continue to receive the dedicated anesthesia expertise and customer service they have come to expect with PPM.
“We are very pleased to announce this partnership between our two physician-focused companies and look forward to welcoming PPM’s incredible team to the NORCAL Group family,” said Scott Diener, President and CEO of NORCAL. “This is a great partnership for both companies and an opportunity for NORCAL to continue our national expansion and establish a strong Midwest presence.”
The boards of each company have approved PPM Services’ sale to NORCAL of 100% ownership of PPM Services in an all cash transaction, which is subject to the support and vote of PPM Services shareholders, customary closing conditions and regulatory approvals. Closing is expected to occur in the first quarter of 2017.
About Preferred Physicians Medical
Established in 1987, Preferred Physicians Medical Risk Retention Group, Inc. (PPM) pioneered the concept of a specialty-specific insurance company. PPM is the only anesthesia-specific medical professional liability insurance carrier in the nation.
PPM is national in scope, insuring anesthesia practices in over 40 states with assets of approximately $213 million and surplus in excess of $125 million. PPM is currently rated “A” (Excellent) by A.M. Best, the industry's leading insurance rating agency. Learn more about PPM at its website ppmrrg.com and its partnership with NORCAL at ppmrrg.com/PPMandNORCAL.
About NORCAL Mutual
Since 1975, NORCAL Mutual has been a policyholder-owned and physician-directed medical professional liability carrier dedicated to ensuring the availability of affordable and relevant coverage. NORCAL Mutual currently has approximately $1.58 billion in assets, with surplus of $688 million and is one of the top ten medical professional liability carriers in the nation, based on direct written premium. The company holds an “A” (Excellent) rating by A.M. Best for its financial strength and stability. Learn more at its website at norcalmutual.com.
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