ProAssurance Corporation has completed its acquisition of Eastern Insurance Holdings, Inc.
Under the terms of a previously announced agreement, Eastern became a wholly-owned subsidiary of ProAssurance through an all cash transaction that valued Eastern at $24.50 per share with a total transaction value of $205 million, effective January 1, 2014.
“With the completion of the Eastern transaction, we have taken a significant step toward our goal of building an insurance platform that will allow us to serve the emerging needs of policyholders and shareholders in the years and decades ahead,” said ProAssurance's chairman and chief executive officer, W. Stancil Starnes. He added, “We are confident that being able to provide our policyholders with a best-in-class workers' compensation solution will make us a more attractive insurance partner. We believe that Eastern will not only enhance the coverages we can offer, but will help us achieve attractive growth and underwriting profit throughout the insurance cycle. And while our focus in this transaction will be leveraging Eastern's long term position in health care workers' compensation solutions and its proven track record in alternative risk transfer solutions, we also recognize the importance of the product line diversification the transaction will provide for the combined organization.”
The president of Eastern, Michael L. Boguski, said, “Our Eastern team is extremely pleased to join the ProAssurance family of companies. We share similar corporate cultures built on integrity, innovation, and carefully cultivated customer and employee loyalty. We look forward to continuing to execute the workers' compensation strategic business plan under the Eastern brand with the support, expertise, and financial strength of our new partners at ProAssurance.”
Mr. Boguski and the Eastern senior executive team have entered into long term contracts in conjunction with the transaction. Eastern will continue to operate from its corporate office in Lancaster, Pennsylvania, and will maintain all existing regional and satellite office locations.
ProAssurance Corporation was advised in this transaction by Raymond James & Associates and the law firm of Burr & Forman, LLP. Eastern Insurance Holdings, Inc. was advised by Keefe, Bruyette & Woods, Inc. and the law firm of Stevens & Lee.
Learn more: www.proassurance.com; www.eihi.com.
Victoria Spears
Victoria Prussen Spears is senior vice president of Meyerowitz Communications Inc., a law firm marketing communications consulting company. A graduate of Sarah Lawrence College and Brooklyn Law School, Ms. Spears was an attorney at a leading New York City law firm before joining Meyerowitz Communications. She may be contacted at [email protected].