Griffin Financial Group Advises Healthcare Underwriters Group in its Consolidation

Company Overview
Healthcare Underwriters Group consisted of three separate insurance companies, each possessing a single state license to provide medical professional liability coverage to doctor groups and independent physicians. The three insurers, Healthcare Underwriters Group of Florida, a Florida reciprocal exchange, Healthcare Underwriters Group of Kentucky, a Kentucky reciprocal exchange and Healthcare Underwriters Mutual Group of Ohio, an Ohio mutual insurance company, were commonly managed by the same management company.

The companies faced a constantly changing health care industry and an environment where many physicians were leaving independent practice and migrating to larger physician organizations and hospitals, a trend expected to accelerate due to the Affordable Care Act. In response to this and other market conditions, the three insurers and the management company adopted a multi-step strategic plan predicated upon the demutualization of the three insurance companies through the distribution of stock to the respective insureds of each insurance company followed by the reorganization of the three insurance companies and the management company into a holding company structure. As part of the reorganization, shareholders of each of the companies received holding company stock. The result is a multi-state regional stock insurance company. The holding company believes the consolidation will improve its competitive position in the marketplace.

Griffin Financial Group was retained by the companies as exclusive financial advisor to assist in the structuring of the transaction. Griffin also provided a fairness opinion to each of the insurance companies in connection with the reorganization.

For more information on this transaction, contact Jeffrey P. Waldron at 610.205.6028.