Wednesday, May 29, 2024

Raleigh liability insurer Curi merging with Minnesota company

Raleigh-based Curi Holdings agreed to merge with Edina, Minnesota-based Constellation, Inc. another medical liability insurance company, to create a business with more than $2 billion in assets and $400 million in annual revenue. Terms weren’t disclosed.

Curi CEO Jason Sandner will lead the combined group, pending regulatory approval. Officials said the two companies share similar values for customer service and innovation and the combination will create a national brand with more than 50,000 physicians, healthcare providers, and organizations as customers.

“Trends in the healthcare industry over the last decade call for partners who can deliver services to healthcare providers at a national scale and in a more diversified way,” Sandner said in a press release.

There is minimal geographic overlap between the companies, Curi officials said. Curi, which employs about 250 people, was formerly known as Medical Mutual Insurance Company of North Carolina.

Both organizations provide liability insurance coverage and related services. Curi has expanded in recent years by adding wealth management, industry analytics, and technology units.

Constellation CEO Ryan Crawford will lead the merged insurance businesses. The 10 directors of each company’s boards will join the merged board.

Curi reported $101 million in net income, $3 million in positive cash flow and surplus capital of $685 million, according to its 2021 annual report. Constellation had $409 million in surplus capital as of 2021, the company said.

Curi was advised by Piper Sandler & Co. and the Raleigh law firm Smith, Anderson, Blount, Dorsett, Mitchell & Jernigan.

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