New Jersey’s Proformance Insurance Company announced that it will acquire the independent insurance agency-produced New Jersey auto and homeowners insurance business of MetLife Auto & Home for $10 million in cash plus $10 million in a stock purchase.
The bulletin noted that “Metropolitan Group Property and Casualty Insurance Company and Metropolitan Direct Property and Casualty Insurance Company, companies that specialize in group and affinity auto and home insurance business, will continue to operate in New Jersey and are not affected by this transaction.”
Proformance Executive VP Cynthia L. Codella described the transaction as a benefit for the policyholders and both insurance carriers. “This acquisition will provide continued coverage for approximately 40,000 transferred policyholders and the independent agents who represent them, while bringing new capital and new jobs to the Garden State,” she stated.
As part of the transaction, MetLife Auto & Home will become approximately a 9 percent shareholder of National Atlantic Holdings Corporation, parent company of Proformance.
“We welcome MetLife Auto & Home to our family of shareholders,” stated Frank J. Prudente, Executive VP of National Atlantic Holdings. “We will utilize the capital raised from their stock purchase to further strengthen the financial resources of Proformance Insurance.”
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