Travelers Property Casualty Corp. has signed a definitive agreement to purchase renewal rights to the majority of Atlantic Mutual’s commercial lines inland marine and ocean cargo businesses written by Atlantic Mutual’s Marine Division.
The transaction reportedly offers Travelers the ability to acquire up to approximately $110 million in new net written premium plus the related unearned premium reserve currently on Atlantic Mutual’s balance sheet. Travelers expects the transaction to be accretive to earnings in 2004.
“This transaction, like the Royal & SunAlliance USA renewal rights agreement we announced recently, is in line with our strategy of supplementing internal growth through quality acquisitions that complement our core businesses,” said Douglas Elliot, Travelers COO.
“We look forward to further expanding our distribution capabilities through new relationships with independent agents and brokers,” added Pete Higgins, Travelers executive vice president and CEO of the Commercial Accounts Group. “In addition, we’re especially pleased to be able to bring aboard specialized expertise from Atlantic’s experienced staff to help ensure a smooth transition for our agents and to maintain a high-quality and growing book of business.”