ProAssurance closes on Eastern Insurance deal

January 2, 2014

BIRMINGHAM, Ala. (AP) -- Medical professional liability insurer ProAssurance has completed its $205 million acquisition of Eastern Insurance Holdings Inc.

ProAssurance Corp. is paying $24.50 per share for Eastern, a workers' compensation insurer.

ProAssurance said in September when the deal was announced that it had been looking to move into the workers' compensation market for some time.

Eastern's shareholders approved the transaction at a special meeting on Dec. 27. It will become a ProAssurance subsidiary.

The deal is expected to modestly add to ProAssurance's 2014 earnings prior to any one-time transaction-related expenses.

ProAssurance is based in Birmingham, Ala., Eastern Insurance is based in Lancaster, Pa. and will continue to run from that corporate office and will keep all of its existing regional and satellite offices.

ProAssurance shares slipped 25 cents to $48.23 in morning trading.