Hartville Signs Agreement to Acquire Insurance Company

North Canton, Ohio-based pet insurer Hartville Group Inc. announced that the company has finalized the definitive purchase agreement to acquire a property/casualty insurance company. The purchase of the insurance company is subject to customary closing conditions and approval of Hartville acquiring control by the insurance department of the target company’s state of domicile.

Upon satisfaction of the closing conditions, regulatory approval and consummation of the acquisition, Hartville expects to begin writing pet insurance policies through its newly acquired wholly-owned insurance company.

Hartville has been working closely regarding the acquisition with the domiciliary state’s insurance department and is providing administrative services to the insurance company pursuant to an administrative services agreement entered into in April 2004. Hartville said it believes the transaction will receive state regulatory approval and the transaction will be completed in the second quarter of 2004. Details of the transaction will be disclosed immediately following the closing of the transaction in Hartville’s filing with the Securities and Exchange Commission of a Form 8-K.

Hartville CEO Russell Smith III said the acquisition would allow the group to place its own policies leading to at least a 5-percent savings on the dollar premium cost of each policy sold. Smith also said the company would assume 80 percent of the ceded risk after June 1.

Topics Mergers & Acquisitions Carriers