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Member, Beacon International Group, Ltd.
KANSAS CITY, Mo.Berkshire Hathaway Inc. unit National Indemnity Co. is buying Medical Protective Corp., the medical liability insurance operation of GE Insurance Solutions, the companies said Friday.
News of the deal, which is expected to close June 30, comes less than a week after Berkshire Hathaway Chairman Warren Buffett told shareholders at the company's annual meeting that his company would soon make an insurance industry acquisition worth nearly $1 billion.
In a conference call, General Electric Chairman and Chief Executive Officer Jeff Immelt told investors the sale of the company's medical malpractice insurer is valued at $825 million, a spokesman for GE Insurance Solutions said.
Under the terms of the agreement, Omaha, Neb.-based National Indemnity will obtain full ownership of Fort Wayne, Ind.-based Medical Protective Corp., which had gross written premiums of $737 million in 2004, Berkshire Hathaway and GE Insurance Solutions said in a joint statement.
Medical Protective's primary operations will continue to be based in Fort Wayne, and its president and CEO, Tim Kenesey, and management team will remain intact, the companies said.
"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," Mr. Buffett said in the statement. "Medical Protective will be a great addition to the Berkshire Hathaway group of businesses."