) joined hands with the Cooperative of American Physicians Inc.
(CAP) Last week, ProAssurance Corporation (PRA) joined hands with
the Cooperative of American Physicians Inc. (CAP) to provide a
new liability protection product, CAPAssurance in California.
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CAPAssurance is aimed at catering to the needs of hospitals and
other medical facilities in California. As per the deal
CAPAssurance will combine the financial resources of ProAssurance
and the medical professional liability experience of the
physicians' organization to provide liability protection to
California's regional and community hospitals.
For the last 40 years, CAP has been providing physicians with
solutions to help them reduce risks and hedge exposures, and best
in class legal solutions when a claim is filed. As per the joint
venture, CAPAssurance will continue to use the same CAP Claims
Services to protect these physicians.
The long-term success and experience of CAP has influenced
ProAssurance to ink the deal with the company. The deal will
allow ProAssurance to utilize its strong financial position and
expertise, and assist CAP to come up with innovative solutions to
the expensive set of liabilities faced by the healthcare
facilities of California.
In turn the launch of CAPAssurance will allow ProAssurance to
write more premiums in its California operations. We expect the
deal to boost revenues of ProAssurance thereby augmenting
earnings, going forward.
In order to expand its operations, ProAssurance engages in a
number of strategic liaisons. Previously in Jan 2013, the company
completed the acquisition of insurance underwriting company -
Medmarc Insurance Group to diversify its portfolio of insurance
Among others from the industry, Arch U.S. MI, the U.S. subsidiary
Arch Capital Group Ltd.
) announced to acquire CMG Mortgage Insurance Company (CMG MI)
from PMI Mortgage Insurance Company for $300 million to penetrate
deep into the U.S. Mortgage Insurance market.
ProAssurance currently carries a Zacks Rank #3 (Hold). Arch
Capital and other stocks in the industry like
Cincinnati Financial Corporation
Navigators Group Inc.
) carry a favorable Zacks Rank #1 (Strong Buy) and are worth