Medical Protective Company (MedPro), a Berkshire Hathaway subsidiary, agreed in terms to purchase 100-percent ownership of Princeton Insurance Company, a Northeast professional liability insurer for health care providers, from Medical Liability Mutual Insurance Company (MLMIC) in an all-cash transaction.

Princeton Insurance employs more than 100 people, serves more than 13,000 health care providers and sees annualized gross written premiums of approximately $140. At the end of Q2, its surplus stood at approximately $400 million.

According to a company release, upon the closing of the transaction and with the financial support of industry behemoth Berkshire, Princeton Insurance will apply for financial strength ratings and look to increase its product offerings.

Princeton’s principal operations would remain in Princeton, N.J., where it was founded in 1975, and 28-year company veteran Charles Lefevre would remain as president.

The move is the most recent in a string of Berkshire Hathaway acquisitions. Most notably, the news comes in the wake of another Berkshire Hathaway subsidiary, National Indemnity, being rejected in a high-profile bidding war for the purchase of Transatlantic Holdings Inc.

The acquisition is still subject to filings, review and approvals.

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Corrected September 29, 2011 at 12:09PM: yes