American Family Insurance, based in Madison, Wis., is acquiring Nashville, Tenn.-based PGC Holdings Corp. and its subsidiaries, including non-standard auto insurers Permanent General and The General.
The agreement was announced by American Family and Capital Z Partners, majority owner of PGC Holdings Corp. Closing of the anticipated $239 million transaction is targeted for later this year, subject to regulatory approval.
PGC Holdings, also known as Permanent General Companies, will remain a completely separate brand from American Family and will continue to operate as a separate entity. Employee positions will be retained, and Randy Parker will continue in his role as Permanent General’s chief executive officer.
In a separate transaction, American Family is moving forward with an agreement to purchase Lumbermens Casualty Insurance Co. (LCIC). LCIC is a subsidiary of Illinois-based Lumbermens Mutual Casualty Co.
The purchase gives American Family the flexibility to expand into other states in the future. LCIC stopped selling and renewing insurance policies in 2003 and is a shell company. LCIC has property and casualty licenses (auto, homeowners and umbrella) in approximately 40 states.
Lumbermens Mutual was placed in rehabilitation by order of an Illinois Circuit Court on July 2, 2012. The sale of LCIC to American Family was recently approved by the same court. The sale is scheduled to be finalized on Oct. 1.
Source: American Family Insurance