MagMutual Completes Acquisition of New Jersey’s MDAdvantage

Atlanta-based physician insurer MagMutual Insurance Co reports it has .has completed its acquisition of MDAdvantage Insurance Co. of New Jersey.

The deal received final corporate approval and regulatory approval by the New Jersey Department of Banking and Insurance in December. Terms were not disclosed.

According to the companies, MDAdvantage will remain in New Jersey, serving as a hub in the Northeast, and it will write insurance under its current name. Current management and front-end operations are expected to remain in place.

MDAdvantage, according to AM Best, is one of the top three providers of medical professional liability insurance in New Jersey. It also writes in nine additional East Coast states from West Virginia to Massachusetts.

According to S&P Global Market Intelligence, MagMutual is the largest mutual insurer of physicians and the second largest mutual medical professional liability provider in the U.S. The insurer writes more than 30,000 healthcare providers and organizations nationwide.

In addition to providing medical professional liability insurance, MDAdvantage also publishes MDAdvisor, a peer-reviewed, MEDLINE®-indexed journal for the medical community, and hosts the MDAdvantage podcast series.

MagMutual financed the acquisition with existing cash resources.

According to ratings analysts at AM Best, MagMutual’s “adequate operating performance, neutral business profile and appropriate enterprise risk management assessments” are not expected to be impacted by the transaction. AM Best did not make any changes to its credit ratings of MagMutual and its subsidiary, Professional Security Insurance Co. of Scottsdale, Arizona, as a result of the merger announcement last August.

At that time, AM Best placed under review with positive implications the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of “a-” (Excellent) of MDAdvantage Insurance Co. of New Jersey.

Topics Mergers & Acquisitions New Jersey