Michigan Professional Insurance Exchange, a Grand Rapids-based provider of professional medical liability coverage for health systems and care providers, has signed an agreement to sell to a Minnesota company.
The deal with Minneapolis-based Constellation Inc. includes MPIE’s business, assets and liabilities. Directors at both organizations have approved the transaction, which also requires regulatory and subscriber approvals.
“MPIE subscribers will benefit by joining Constellation’s member companies, including mission alignment, a culture focused on people and talent development, innovation and excellence in the delivery of customer service,” MPIE President and CEO Michelle Hoppes said in an announcement of the agreement.
Terms of the transaction, which is targeted to close in mid-2022, were undisclosed.
MPIE provides subscribers with medical professional liability coverage, claims handling and risk reduction, and patient safety services. A subsidiary, Risk Solutions, provides customized risk management services to clients nationwide.
MPIE employs more than 30 people and has annualized gross written premiums of about $23 million. MPIE’s staff would remain with the company.
Constellation consists of a portfolio of medical professional liability insurance and partner companies. The deal for MPIE would extend Constellation into the Michigan and Ohio markets.
“Our companies share a similar purpose, and this expansion helps us to support our policyholders and partners and furthers our purpose to champion all those who devote their lives to health care,” Constellation President and CEO Ryan Crawford said. “The completion of this transaction will enhance and expand Constellation’s footprint and ability to serve our customers in the health care industry.”
Constellation in 2020 recorded $183.5 million in direct written premiums.