Affirmative Insurance Holdings Inc., Addison, Texas, and privately-held USAgencies L.L.C., based in Baton Rouge, La., announced a definitive agreement under which Affirmative will acquire 100 percent of the membership units of USAgencies, in a fully-financed all cash transaction valued at approximately $200 million.
The transaction is subject to regulatory approval and other usual closing conditions associated with similar transactions.
USAgencies is a privately-held non-standard automobile insurance provider headquartered in Baton Rouge. It has 92 sales offices in Louisiana, Illinois and Alabama selling its products directly to consumers through its retail stores, virtual call centers and Internet site. The retail stores in Louisiana will continue to operate under the USAgencies brand. In 2005, USAgencies had gross written premium of approximately $157 million.
“This acquisition brings us closer to building a significant presence in the non-standard automobile insurance industry,” stated Kevin Callahan, CEO of Affirmative. “The acquisition of USAgencies will give Affirmative access to Louisiana, the 12th largest non-standard automobile insurance market in the country.”
Source: Affirmative Insurance Holdings
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