Ohio-based The Midland Acquires Southern Pioneer Life Insurance

The Midland Company based in Ohio, announced that its wholly owned subsidiary, American Modern Insurance Group, reached an agreement to acquire all of the outstanding stock of Southern Pioneer Life Insurance Company.

Southern Pioneer is a privately held insurance company, headquartered in Trumann, Ark. Southern Pioneer has written credit life and disability insurance since 1980 and its annualized credit insurance premiums are approximately $15 million. The acquisition is subject to regulatory approval and terms of the purchase were not disclosed.

John W. Hayden, Midland president and chief executive officer said, “We are very pleased to add Southern Pioneer Life to American Modern Insurance Group’s specialty insurance platform. Southern Pioneer has a track record of producing excellent underwriting results. We anticipate that this transaction will be accretive to our 2006 earnings by approximately five cents per share and the benefit to our 2007 earnings should be in the range of five to ten cents per share,” Hayden said. ”

Hayden added that the company also anticipates that our gross written premiums will benefit by approximately $10 million for the remainder of 2006 and will total approximately $15 million for the full year 2007. He noted that American Modern intends to fund the transaction largely through American Modern’s life insurance investment portfolio.

Midland, which is headquartered in Cincinnati, Ohio, is a provider of specialty insurance products and services through its wholly owned subsidiary, American Modern Insurance Group, which accounts for approximately 95 percent of Midland’s consolidated revenue.

Additional information on the company can be found on the Internet at www.midlandcompany.com .

Source: The Midland Company

Topics Mergers & Acquisitions Ohio