Selective Insurance Group Inc. of Branchville, N.J. announced its Selective Insurance Company of America subsidiary signed a letter of intent to acquire servicing rights to Siebels Bruce Group Inc.’s flood insurance business.
Siebels Bruce was formerly a “Write Your Own (WYO)” carrier for the National Flood Insurance Program (NFIP). Selective agreed to pay $4 million in cash at the close of the deal, and $500,000 to be paid after both Dec. 31, 2003 and Dec. 31, 2004 if certain conditions are met.
The closing of the proposed sale is subject to a number of conditions, including the execution of a definitive purchase agreement, the receipt of all government and regulatory approvals, and satisfactory completion of due diligence by all parties. The parties plan for the transaction to be completed in the fourth quarter of 2002.
Selective currently services more than 126,000 flood policies, representing almost $50 million in premium. The company has flood servicing and marketing offices in New Jersey, Florida and Nebraska. These offices support more than 4,100 independent agents in 49 states, providing service for claims, underwriting, customer service, marketing support, agency licensing and training.
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