By Michael Loney

March 21 - (The Insurer) - The Doctors Company’s deal to acquire medical liability insurer ProAssurance for $1.3 billion has a termination fee of $52.6 million for both sides.

The companies announced the deal on Wednesday, which at $25 per share represents a 60% premium over ProAssurance’s $15.74 closing price on March 18.

New York-listed ProAssurance’s share price closed at $23.16 on Friday.

The deal is expected to close in the first half of 2026.

In a regulatory filing, ProAssurance said that the merger agreement contains termination rights under which under certain specified circumstances ProAssurance will be required to pay The Doctors Company a termination fee of $52.6 million.

Richard Anderson-led The Doctors Company will be required to pay ProAssurance a termination fee of $52.6 million under certain circumstances if the agreement is terminated in connection with a failure to obtain certain required regulatory approvals.

Subject to certain limitations, each of ProAssurance or The Doctors Company may terminate the merger agreement if deal is not consummated by September 19, 2026.

ProAssurance said that the deal upon close will “solidify the combined organization” as the second-largest medical malpractice insurance company in the U.S. and the largest physician-owned carrier.

In a letter sent to employees, ProAssurance president and CEO Ned Rand said: “When combined, we will be the largest physician-owned medical professional liability carrier with pro forma MPL direct written premiums of approximately $2 billion.”

The combined company will have assets of approximately $12 billion.

The Doctors Company has $7.3 billion in assets, and members surplus is over $2.8 billion.