A subsidiary of Berkshire Hathaway has agreed to acquire New York's largest medical malpractice insurer.
The Omaha, Neb.-based National Indemnity Co. said it will purchase the Medical Liability Mutual Insurance Co., converting the malpractice insurer to a company owned by shareholders, rather than policyholders. The acquisition price was not disclosed.
Medical Liability Mutual's policyholders—which include New York hospitals, doctors and dentists—would receive payouts in exchange for the conversion of the company.
Manhattan-based Medical Liability Mutual insures 15,000 physicians, 4,000 dentists and several dozen hospitals, according to its website. In 2015, the insurer reported a net underwriting gain of $61 million. At the end of 2015, Medical Liability Mutual's balance sheet showed assets exceeded liabilities, resulting in a $1.8 billion policyholders' surplus.