Indiana’s Grain Dealers Mutual Now Part of Main Street America Group

The Main Street America Group, based in Jacksonville, Fla., announced that Indiana-domiciled Grain Dealers Mutual Insurance Company has been cleared to become an affiliate of the Jacksonville, Fla.-based super regional property-casualty insurance carrier.

The deal has been approved by the Indiana Department of Insurance and affirmed by policyholders of Grain Dealers Mutual at a special policyholders’ meeting, Main Street America’s announcement said. Financial terms were not disclosed.

Main Street will work “with Grain Dealers’ president Don Malcom and his staff to enter two states that are new to Main Street America (Indiana and Mississippi) and grow market share in several other Grain Dealers states where Main Street America already writes business,” said Tom Van Berkel, Main Street America’s chairman, president and chief executive officer.

Other aspects of the affiliation include:

• Grain Dealers will pool its premium, losses and underwriting expenses with other Main Street America Group companies. It is anticipated the affiliation will result in Grain Dealers qualifying for the “A” (Excellent) rating by A. M. Best that is assigned to The Main Street America Group’s pool.
• Grain Dealers will, over time, gain access to Main Street America’s products, technology and infrastructure.
• Grain Dealers will maintain its brand name and continue to have binding authority. It will also continue to operate from its Indianapolis, Ind., headquarters and its Greensboro, N.C., regional sales office.
• Additionally, Main Street America will provide management oversight of Grain Dealers Mutual and its board of directors will replace Grain Dealers’ board of directors.

Grain Dealers Mutual, founded in 1902, is multi-line regional property-casualty carrier that generated nearly $33 million in premium in 2008. Its product mix is 65 percent commercial lines, 35 percent personal lines.

The affiliation will give Main Street America a much larger Midwest presence. Last year, Main Street America entered the Midwest when it acquired Michigan-domiciled Great Lakes Casualty Insurance Company. During past 18 months, Main Street America has expanded operations into six new states: Arizona, Michigan, Nevada, Oklahoma, Texas and Utah. With the addition of Indiana and Mississippi, the company will now write business in 24 states.

Aon Benfield Securities Inc. was responsible for arranging the affiliation discussions that led to the transaction between The Main Street America Group and Grain Dealers Mutual Insurance Company.

Source: Main Street America Group, www.msagroup.com.

Topics Indiana