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Napa’s The Doctors Company to invest $150M with Pier 88 fund

The Doctors Company said it took a 25 percent stake in a San Francisco-based health care- and technology-focused asset-management fund as part of a long-term deal to oversee $150 million in investments.

The Napa-based firm, said to be the nation’s largest physician-owned medical malpractice insurer, announced March 23 it had inked a strategic partnership with Pier 88 Investment Partners to manage a convertible-bond fund strategy. The Doctors Company said it had been looking to increase its allocation to alternative assets.

"We are very pleased to enter into this strategic relationship with [CEO] Frank [Timons] and his team at Pier 88," said David G. Preimesberger, chief financial officer. "We deeply believe in Frank's abilities as an investment manager and trust that he will achieve the superior investment results we are looking for in today's volatile market. Pier 88 has the institutional heft required of enduring asset management businesses for the long term, evidenced by the high quality board of advisors who have also personally invested in the firm and funds."

The Doctors Company (thedoctors.com) has 78,000 members and $4.3 billion in assets. It has an “A” rating by A.M. Best Company and Fitch Ratings.

The company also on March 23 said board of governors declared a premium dividend of about $32 million to recognize and reward members for their loyalty and dedication to the practice of good medicine. The company has paid $370 million-plus in such dividends since 1976.

“For the 11th year in a row, we are recognizing our members for their commitment to superior patient care with a significant dividend,” said Richard E. Anderson, M.D., FACP, chairman and CEO. “Our members have made this dividend possible by their excellent claims experience. In addition, we reward our members with the Tribute Plan, which has distributed $40 million to retiring members to date.”

The 2016 dividend will reduce member premiums in Colorado, Florida, Georgia, Idaho, Illinois, Maryland, Michigan, Montana, New Mexico, North Carolina, Ohio, Oregon, Texas, Virginia, Washington and Wyoming. The dividend will vary from 4 percent to 24.5 percent, depending on loss experience of the state.

Members of the following select medical specialty societies may also receive a dividend: American College of Surgeons, American Academy of Otolaryngology – Head and Neck Surgery, American Association of Neurological Surgeons and American Society of Plastic Surgeons.

Eligible members will receive this year’s dividend on their annual premium for policy renewals on or after July 1.

Timons started Pier 88 (pier88.com) in 2013. It is an alternative asset management firm specializing in long-biased equity hedge funds containing both equities and convertible bonds.

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