A subsidiary of Palisades Safety and Insurance Association reported that it plans to acquire National Atlantic Holdings Corp., including its subsidiary, The Proformance Insurance Co.
Under the terms of the agreement, each outstanding share of common stock of National Atlantic will be canceled and converted into the right to receive $6.25 in cash per share.
The board of directors of National Atlantic has approved the merger.
The closing is expected to occur in the third quarter of 2008. The merger is subject to the approval of National Atlantic’s shareholders, certain regulatory approvals and the satisfaction or waiver of other closing conditions. The merger is not subject to a financing condition.
Both insurers write only in New Jersey. The Palisades Group is the fifth largest personal automobile carrier and second largest independent agency writer of automobile insurance in New Jersey.It is a member of the Massachusetts-based Plymouth Rock group of companies.
National Atlantic sells business coverages in addition to auto insurance. The merger will increase the auto market share in the state for Palisades and provide its independent agents with access to product offerings beyond private passenger auto.
“The merger of these two leading New Jersey property/casualty insurers will result in a stronger organization that remains exclusively focused on the New Jersey market,” said Palisades President and CEO Ed Fernandez.
Since its inception in 1992, the Palisades Group has completed nine consolidation transactions and two acquisitions, the most recent being the 2006 acquisition of a book of business from Parkway Insurance.
National Atlantic Holdings Corp.
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