ProAssurance Acquisition Nears Final Approval as Key Hurdles Cleared

The planned acquisition of ProAssurance by The Doctors Company is advancing toward its anticipated conclusion in the first half of 2026. With overwhelming shareholder support and crucial regulatory milestones now achieved, ProAssurance shares are trading near the all-cash offer price of $25 per share.

Regulatory Clearance and Shareholder Backing Pave the Way

A significant step forward occurred on July 7, 2025, when the mandatory waiting period under the Hart-Scott-Rodino Antitrust Improvements Act was terminated ahead of schedule. This development leaves only the requisite approvals from state insurance regulators in relevant jurisdictions as the final administrative step.

The transaction received resounding support from ProAssurance stockholders on June 24, 2025. More than 99% of the votes cast were in favor of the merger agreement. The $25 per share acquisition price represented a substantial premium of approximately 60% over ProAssurance’s closing share price on March 18, 2025, just before the initial announcement.

Strong Quarterly Performance Highlights Company Value

ProAssurance demonstrated robust financial health in its second quarter 2025 results, released unexpectedly strong on August 5, 2025:

Should investors sell immediately? Or is it worth buying ProAssurance?

• Net income reached $21.9 million ($0.42 per diluted share)
• Operating income came in at $26.8 million ($0.52 per diluted share)
• Operating revenue totaled $271.9 million, representing a 2.4% year-over-year decrease but exceeding expectations by 2%

The company’s performance significantly outpaced analyst estimates, which had projected just $0.19 per share. This strength was primarily driven by a 6.5% increase in net investment income, which rose to $38.9 million, coupled with reduced operational expenses. The combined ratio showed marked improvement at 103.6%, compared to 110.9% in the same quarter last year.

Market Implications and Transaction Timeline

As of September 18, 2025, ProAssurance shares closed at $23.79, trading very close to the acquisition price. This narrow spread indicates that the market has largely priced in the transaction’s completion, suggesting limited potential for further upward movement before the deal finalizes.

Upon completion of the acquisition, ProAssurance shares will be delisted from the New York Stock Exchange. The company will operate as a wholly-owned subsidiary of The Doctors Company. This strategic combination will unite two leading providers of medical professional liability insurance, creating an organization with approximately $12 billion in assets.