Wunderlich Sees 'Opportunity' in ProAssurance Acquisition (PRA)
Wunderlich Securities sees 'opportunity' in ProAssurrance Corporation's (NYSE: PRA) acquisition of American Physicians Services Group for $222 million. Wunderlich reiterated its Buy rating, and $64 price target.
The transaction, set to close by year-end, "makes sense due to PRA's limited existing presence in Texas. PRA expects the acquisition to be accretive to 2011 earnings and add $60mm-$65mm in new business."
Wunderlich analysts "believe the acquisition price is reasonable and provides for an excellent strategic opportunity for PRA. AMPH is the second-largest medical malpractice insurer in Texas, an attractive state from a regulatory perspective."
ProAssurance Corporation is a holding company for property and casualty insurance companies focused on professional liability insurance. Shares are lower by 0.5% this afternoon, to $54.68.
