The two companies are leaders in medical liability insurance. They hope to close the deal in the second half of 2023.
Curi and Constellation, two leading providers of medical professional liability insurance, have agreed to merge and form an organization with more than $2 billion in assets.
The two firms announced that they reached a merger agreement on Feb. 1. Assuming regulators sign off on the transaction, the companies said the merger is expected to be completed in the second half of 2023.
The leaders of the companies pointed to the value of creating an organization with a national scope to serve physicians and healthcare organizations.
“We couldn’t be more excited to announce this merger with Constellation,” Curi CEO Jason Sandner said in a statement. “Trends in the healthcare industry over the last decade call for partners who can deliver services to healthcare providers at a national scale and in a more diversified way. Curi expects to be that partner, and this merger allows us to continue fulfilling our mission for another 50 years and beyond.”
Ryan Crawford, president and CEO of Constellation, touted the merger as a combination of “two like-minded companies, both with a vision to provide superior products and services to healthcare providers and organizations across the nation.”
“We’re bringing together a group of people, products, and services that will continue to deliver unwavering care for our collective customers,” Crawford said in a statement.
When the merger is complete, Sandner will remain the CEO of Curi Holdings, Inc. Crawford will serve as CEO of the merged insurance business.
The merged company will generate $400 million in revenue and serve more than 50,000 doctors, along with healthcare providers around the country, the firms said. The companies also touted recent investments in areas such as wealth management and technology platforms.
Both companies will have equal representation in the management of the newly merged organizations, with 10 directors from each company’s board.
Curi, based in Raleigh, N.C., was founded in 1975 and was originally known as Medical Mutual Insurance Company of North Carolina. The firm insured doctors who couldn’t get malpractice coverage from other firms.
Founded more than 40 years ago, Constellation, based in Minnesota, includes Midwest Medical Insurance Co. (MMIC), Arkansas Mutual and Utah Medical Insurance Association (UMIA). Constellation recently completed the acquisition of Michigan Professional Insurance Exchange.