The deal to bring Lancaster County-based Eastern Insurance Holdings Inc. into the fold of an Alabama insurance company has been finalized, according to both sides.
ProAssurance, of Birmingham, Ala., announced Thursday morning that the deal, first revealed in September, became official in the last week. Donna Nardy, marketing manager at Eastern Insurance, confirmed the sale Thursday.
Eastern’s stockholders voted Dec. 27 to approve the sale after a more than three-week delay from the original shareholder vote date. ProAssurance is paying about $205 million to acquire the local company that started in 1997.
Nardy said only that shareholders “overwhelmingly” approved the sale.
“Our Eastern team is extremely pleased to join the ProAssurance family of companies,” Eastern Insurance President Michael Boguski said. “We share similar corporate cultures built on integrity, innovation and carefully cultivated customer and employee loyalty. We look forward to continuing to execute the workers’ compensation strategic business plan under the Eastern brand with the support, expertise and financial strength of our new partners at ProAssurance.”
ProAssurance is a specialty writer of professional liability insurance and products liability insurance for medical technology and life sciences companies, according to its website.
Eastern Insurance is a niche insurance underwriter specializing in workers’ compensation coverage.
Officials on both sides have said nothing will change for Eastern Insurance in the day-to-day operations, and none of its 230-plus employees will lose their jobs. The headquarters in Lancaster and its six other offices are staying open and will be under Eastern’s management.
ProAssurance Chairman and CEO W. Stancil Starnes confirmed that Tuesday and said Eastern’s current management structure will remain in place, signing long-term employment contracts with ProAssurance.
“We are highly focused on acquiring companies with strong management and superior insurance expertise and have found that in the Eastern team,” he said. “We are very pleased that Eastern’s senior executives have agreed to enter into long-term employment contracts in conjunction with the transaction.”