Vesta Insurance Group and its Shelby Casualty Insurance Company of Birmingham, Ala. have sold the renewal rights for Shelby’s automobile, homeowners and dwellings insurance business in Pennsylvania, Tennessee and Alabama to the Donegal Group and its affiliate Donegal Mutual Insurance Company, of Marietta, Pa.
The agreement is in keeping with Shelby’s plans to withdraw from those three states.
Donegal will pay specified amounts to Vesta, based on the direct gross premium written by Donegal Group on policies issued.
“This renewal rights transaction marks another important milestone in
executing our goal of refocusing our business toward higher-margin lin deliver sustainable profitability,” said Norman W. Gayle, III, president and CEO of Vesta Insurance. “As always, we remain committed to enhancing long-term value for our shareholders and other constituents.”
Sagent Advisors Inc. acted as financial advisor to Vesta in connection with this transaction.
Vesta, headquartered in Birmingham, Ala., is a holding company for a group of insurance companies that primarily offer homeowners and property insurancein targeted states.
Donegal Group Inc. is an insurance holding company offering property and casualty insurance in the Mid-Atlantic, Southeast and Midwest states through its wholly owned subsidiaries, and through a pooling agreement with its affiliate, Donegal Mutual Insurance Company. Its wholly owned subsidiaries include Atlantic States Insurance Company, Le Mars Insurance Company, Peninsula Indemnity Company, The Peninsula Insurance Company and Southern Insurance Company of Virginia. The Donegal Group conducts business through a network of independent insurance agencies.
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