The Doctors Company Acquired Hospitals Insurance Company

The Doctors Company (“TDC”) acquired Hospitals Insurance Co., Inc. (“HIC”)

• For a total consideration of $650 million
• Transaction officially closed on July 31st, 2019

HIC is a leading medical professional liability (“MPL”) insurer focused in New York state

• Third largest MPL insurer in New York state with a 13% market share; 10th largest in the U.S.(a)
• Ownership group consists of three leading academic medical centers in New York
  • Mount Sinai Health System, Montefiore Health System and Maimonides Medical Center
• Over $225m of LTM DPW and $592mm of statutory surplus as of 9/30/18

TDC is the nation’s largest physician owned medical malpractice insurer

• Second largest medical professional liability insurer in the country in 2017 with ~$700mm of DPW(a)
• Over 80,000 members across the country
• Strong capital position with $4.8bn of total assets and $2.1bn of statutory surplus as of 9/30/18
• AM Best A (Excellent) and Fitch A (Strong) financial strength ratings

TCMA acted as financial advisor to The Doctors Company; key TCMA responsibilities included:

• Assisted in valuation analysis
• Conducted business and financial due diligence
• Advised on the structuring and negotiation of the transaction terms
• Provided objective advice and acted as a sounding board to TDC throughout the process

TCMA is providing a Fairness Opinion to The Board of Directors of The Doctors Company