Mutual Growth Strategy: Northern Neck Insurance to Acquire Frederick Mutual

October 6, 2025

Northern Neck Insurance Co. and Frederick Mutual Insurance Co. announced they intend to affiliate, pending regulatory approval, in a move to grow across the Mid-Atlantic region.

The partnership will unite Northern Neck’s personal lines focus with Frederick Mutual’s commercial lines experience. The insurers will continue to operate under their existing brands. Together, the companies will have more than 90 employees and 450 independent agency locations in Virginia, Maryland, Pennsylvania, Delaware, the District of Columbia, and North Carolina.

According to AM Best, the transaction will be a stock purchase agreement.

Frederick Mutual Insurance Co. is jointly owned by Frederick Mutual Group, Inc., a stock corporation with majority ownership, and Mutual Capital Investment Fund (MCIF). Northern Neck has agreed to purchase MCIF’s preferred stock. Upon closing, the preferred stock will convert to common stock. After the transaction closes, management intends to pool results for both companies.

“This is a transformative moment for both companies,” said Peter Cammarata, president and CEO of Northern Neck. “By joining forces, we will combine our strengths to create a compelling alternative in the marketplace–a dynamic mutual insurer focused on empowering agents, enhancing coverage and service for members, and providing great career opportunities for employees.”

As part of the agreement, Northern Neck will enter into a management agreement with Frederick Mutual, with Cammarata as president and CEO of both organizations and Northern Neck’s board of directors providing unified governance.

AM Best announced that Northern Neck’s credit ratings had been placed under review with negative implications. AM Best said the ratings will remain under review pending regulatory approval and until AM Best “fully analyzes the impact of Northern Neck post-transaction rating fundamentals.”

The transaction is expected to close before the end of 2025.

Topics Mergers & Acquisitions

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