Florida Physicians Insurance to acquire The Tenere Group

Florida Physicians Insurance Company Inc. and Springfield-based The Tenere Group Inc. announced Oct. 7 a definitive agreement for the Florida company to acquire The Tenere Group.

FPIC will pay $20.6 million in cash for The Tenere Group.

"The Tenere acquisition is an integral part of our (medical professional liability) growth strategy in the Midwest," said William R. Russell, chief executive officer of Florida Physicians, in a news release.

"In addition, Interlex brings FPIC a new product line that provides unique cross-selling

opportunities through our many relationships with existing defense attorneys. Our goal is to expand this product to every state where we conduct business," he added.

The FPIC release said the company will continue to aggressively pursue acquisitions both in the insurance industry and in insurance- and health care-related services.

"We started the company over 20 years ago with sound management principles and a dedication to superior customer service," said Dr. Raymond Christy, president and CEO of The Tenere Group. "Our collective business strategies and service offerings complement one another, which will allow The Tenere Group and FPIC to provide increased value to our clients and shareholders."

The Tenere Group is a stock holding company with two primary insurance subsidiaries. The largest subsidiary is Intermed Insurance Co., which provides medical professional liability insurance to about 1,670 physicians in Missouri, Texas and Kansas. Intermed currently writes about $8.5 million in direct premiums.

The other subsidiary, Interlex Insurance Co., specializes in legal profes-

sion liability and insures about 921 lawyers in Missouri. Interlex currently writes about $2 million in direct premiums.

The purchase is subject to a number of conditions, including shareholder and regulatory approvals. The parties anticipate the transaction will close in December.

Florida Physicians Insurance Company is a provider of professional liability insurance for physicians, dentists, hospitals and other health care marketplaces. The company is traded on the NASDAQ exchange under the symbol FPIC.

The company's stock ended trading Oct. 14 at $25.3125.

Tenere began as Risk Control Associates Inc., an assessable mutual property and casualty insurance company, organized in 1976 to provide professional liability coverage to physicians and dentists practicing in Missouri.

In 1991, the company reorganized and became a non-assessable mutual property and casualty insurance company. Its name was changed to RCA Mutual Insurance Company.

In 1995, the company converted from a mutual to a stock property and casualty insurance company and its name was changed to Intermed Insurance Co.

Effective with the demutualization, Intermed became a wholly owned subsidiary of The Tenere Group Inc., a Missouri holding company formed during the demutualization process, and the policyholders of RCA became the stockholders of Tenere.