Constellation has announced that it is to acquire the business, assets, and liabilities of Michigan Professional Insurance Exchange (MPIE).
The agreement, which is subject to regulatory and subscriber approval, comes as AM Best said the financial strength rating and long-term issuer rating ratings of Constellation will remain unchanged.
A release from Constellation said that the transaction will deliver many benefits for MPIE subscribers, citing its own high level of financial stability and expanded product and service offerings.
Ryan Crawford, Constellation’s president and CEO said, “We are thrilled to be partnering with MPIE. 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 … to the essential work of enhancing health—and life. The completion of this transaction will enhance and expand Constellation’s footprint and ability to serve our customers in the health care industry.”
Constellation has been on an acquisition spree in the last year. In July, it acquired Columbian Financial Group, following its acquisitions of Coastal Insurance Underwriters, Cybercom, and INSUREtrust, and Ohio National.
All of these followed its appointment of Crawford as president and CEO in March last year.
AM Best commented on the latest transaction in a statement.
It said: “MMIC Insurance, Inc. intends to assume MPIE’s historical loss reserves through a loss portfolio transfer and will enter into a Quota Share and Renewal Rights Agreement with MPIE’s future business. In addition, Constellation will purchase the assets of MPIE and membership interests of its subsidiary companies.”
It added: “This transaction will expand Constellation’s business in the Michigan and Ohio markets. Following the close of the transaction, AM Best will continue to discuss its progress with management and assess its effects on Constellation’s operations. The transaction is expected to close mid-2022.”
