SOURCE: American Physicians Service Group, Inc.

American Physicians Service Group, Inc.

November 30, 2010 17:27 ET

ProAssurance Completes Acquisition of American Physicians Service Group

AUSTIN, TX--(Marketwire - November 30, 2010) - ProAssurance Corporation (NYSE: PRA) today completed its previously announced acquisition of American Physicians Service Group, Inc. ("APS") (NASDAQ: AMPH). As a result of the merger, APS is now a wholly-owned subsidiary of ProAssurance.

The Chairman and Chief Executive Officer of APS, Ken Shifrin, said, "We've found the ideal partner to carry on the physician-focused traditions of APS. We know that ProAssurance will continue to serve our 6,800 insureds with the individual attention that is a part of our mutual corporate cultures. The last decade has resulted in a spectacular 36% average annual increase in APS' stock price, from $1.50 to $32.50, and I want to thank our shareholders for their trust and for the opportunity to lead the company during this exciting time. I also want to say what an honor it has been to work with the board of directors and employees of APS and to thank them for their loyalty and dedication."

"We are excited about the opportunities this transaction creates for us," said ProAssurance's Chairman and Chief Executive Officer, W. Stancil Starnes. "Not only does it give us significant market presence as the second largest writer of medical professional liability (MPL) insurance in Texas, it also enhances our presence in Oklahoma and Arkansas. We expect to leverage the skill and dedication of APS' employees to deliver an unmatched level of service and financial strength to policyholders in these three key states. Additionally, we believe our shareholders will see benefits as well, as we expect to grow profitably during a challenging time in our business."

Under the terms of the merger, each share of APS stock was redeemed for $32.50 in cash. Shareholders whose stock is held by a broker or in direct registration will be paid automatically. Those APS shareholders with stock certificates will receive instructions by mail for surrendering their shares in order to receive payment. Shareholders with questions about the share conversion process may contact American Stock Transfer & Trust at (877) 248-6417.

As a result of this transaction, APS' common stock will cease to trade on the Nasdaq Stock Market prior to the open of business on December 1, 2010, and will thereafter be delisted.

About APS

APS is an insurance holding company with subsidiaries that provide medical malpractice insurance for physicians and other healthcare providers. APS is headquartered in Austin, Texas. Further information about the company is available on the Internet at www.amph.com.

Contact Information

  • For further information, visit the APS website at www.amph.com or contact:
    Frank B. O'Neil
    ProAssurance Corporation
    Sr. Vice President, Corporate Communications & Investor Relations
    800-282-6242
    205-877-4461
    Email Contact