Investment Banking - NORCAL Mutual Insurance Company
Transactions | Insurance
Client: NORCAL Mutual Insurance Company
Transaction Type: Mergers & Acquisitions
Role: Independent Appraiser
NORCAL Group to be Acquired by ProAssurance
- Incorporated in 1975, NORCAL is one of the leading providers of Medical Professional Liability (“MPL”) insurance nationwide. NORCAL solely writes MPL business in 41 states, with 17,000+ policies and 32,000 insured doctors.
- NORCAL determined that its limited product offering & capabilities, need for scale, and changes in the MPL industry made continuing as an independent company not in the best interests of its policyholders. As a result, NORCAL determined that a strategic partner would enhance its ability to better serve policyholders and navigate industry challenges.
- ProAssurance and NORCAL as a combined company will be the nation’s third largest MPL writer with a continued focus on responding to changes in the MPL industry, greater scale, top-tier talent, and a deep management team. NORCAL is seeking to complete a Sponsored Demutualization with ProAssurance serving as sponsor.
- Boenning provided NORCAL with an independent Appraisal of the Company’s fair value as required by the California Insurance Code (Section §4097).
- Additionally, Boenning reviewed, and provided its opinion on, NORCAL’s Allocation Formula for the distribution of fair value among Eligible Members.