Administrators for the Professions, Inc. ("AFP") provides administrative and claims services to Physicians' Reciprocal Insurers ("PRI"), a New York based medical malpractice insurer of 7,000 physicians with annual premiums of $125 million.
FPIC Insurance Group, Inc., the largest medical professional liability insurer in Florida, approached AFP with a pre-emptive offer to purchase the company.
Along with AFP's counsel and management-shareholders, we developed a strategy to evaluate the offer without subjecting the offer to material risk.
The negotiated transaction was concluded at $52 million, comprised of $44 million in cash and $8 million in FPIC stock, based upon AFP's prior year earnings of approximately $3 million. Other than the management agreement for services, PRI remained independent of FPIC.