Berk­shire Hath­away to buy largest N.Y. med-mal in­surer

Modern Healthcare - - REGIONAL NEWS - —Jonathan LaMan­tia, Crain’s New York Busi­ness

A sub­sidiary of Berk­shire Hath­away has agreed to ac­quire New York’s largest med­i­cal mal­prac­tice in­surer.

The Omaha, Neb.-based Na­tional In­dem­nity Co. said it will pur­chase the Med­i­cal Li­a­bil­ity Mu­tual In­sur­ance Co., con­vert­ing the mal­prac­tice in­surer to a com­pany owned by share­hold­ers, rather than pol­i­cy­hold­ers. The ac­qui­si­tion price was not dis­closed.

Med­i­cal Li­a­bil­ity Mu­tual’s pol­i­cy­hold­ers—which in­clude New York hos­pi­tals, doc­tors and den­tists— would re­ceive pay­outs in ex­change for the con­ver­sion of the com­pany.

Man­hat­tan-based Med­i­cal Li­a­bil­ity Mu­tual in­sures 15,000 physi­cians, 4,000 den­tists and sev­eral dozen hos­pi­tals, ac­cord­ing to its web­site. In 2015, the in­surer re­ported a net un­der­writ­ing gain of $61 mil­lion. At the end of 2015, Med­i­cal Li­a­bil­ity Mu­tual’s bal­ance sheet showed as­sets ex­ceeded li­a­bil­i­ties, re­sult­ing in a $1.8 bil­lion pol­i­cy­hold­ers’ sur­plus.

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