GE Insurance Solutions is selling Medical Protective Corporation to Berkshire Hathaway unit, National Indemnity.
Under the transaction, National Indemnity will own 100% of Medical Protective Corporation and its subsidiaries from GE Insurance Solutions.
Berkshire Hathaway chairman, Warren Buffett said, “For more than 100 years, Medical Protective has been the ‘gold standard’ in protecting and defending the assets and reputations of healthcare providers. The Medical Protective team has successfully navigated through difficult insurance cycles by consistently delivering the nation’s best defense for doctors and solid results for shareholders. Medical Protective will be a great addition to the Berkshire Hathaway group of businesses.”
The transaction is still subject to completion of a definitive agreement and regulatory approvals.
“We’re pleased to work with Berkshire Hathaway and place an excellent business with great owners,” said GE Chairman and CEO Jeff Immelt. “GE is taking another step in our plan to reduce our exposure to insurance while maximizing value for investors; Medical Protective is moving into a bright future.”
“This is a tremendous win for Medical Protective policyholders and the Medical Protective team,” said GE Insurance Solutions Chairman, President and CEO, Ron Pressman. “Berkshire Hathaway offers healthcare providers continuity in their medical professional liability coverage and will provide Medical Protective opportunities and capital for continued growth.”
Completion of the deal is expected to take place by the end of June.
Berkshire Class A shares went up $200 and Class B shares remained unchanged in early afternoon NYSE trading. Not many of Berkshire’s shares are outstanding.
Chris is a staff writer for Murdok. Visit Murdok for the latest ebusiness news.
