Merger will see new MDO with 35% market share
Under the proposal, MDA National and Medical Insurance Group Australia (MIGA) would form a new company called Medical Defence Australia Ltd.
The merger, to take place in the fourth quarter of this year, requires approval from the Australian Competition and Consumer Commission, the Australian Prudential Regulation Authority and the Federal Court of Australia. It will also require the support of members.
Members will vote on the proposal in August, with the constitutions of each firm requiring majority support for the deal to proceed.
MIGA CEO Mandy Anderson, who will become CEO and managing director of the new entity, said that indemnity cover under existing policies would not change for members until their next premium was due.
Ms Anderson said overall market share of the combined group will be about 35%, with the two companies currently boasting similar membership numbers.
“Any changes to future policies and cover