Madison, Wisconsin-based American Family Insurance Mutual Holding Co. announced its policyholder members have approved the company’s merger with Florida’s Main Street America Group Mutual Holdings Inc.
More than 86 percent of votes cast by proxy or in person supported the merger. Main Street America members approved the merger at a member meeting Oct. 19, with more than 90 percent of votes cast in favor.
The merger was previously approved by state insurance regulators in Wisconsin, Florida, Indiana, Minnesota and South Carolina, and by the American Family and Main Street America boards of directors.
The merger is effective on Oct. 31. At that time, Tom Van Berkel and Idalene F. Kesner, a Main Street America board member since 2010, and dean and professor of strategic management at Indiana University Kelley School of Business, will join the board of directors of American Family Insurance Mutual Holding Co.
Main Street America has a robust commercial insurance business, and its strong presence in east coast states complements the American Family brand footprint and helps reduce the geographic concentration risk of Midwest storms. While American Family sells its branded products primarily through exclusive agents, Main Street America uses independent agents, offering the American Family group of companies a new sales channel.
Main Street America will operate as a stand-alone brand within the American Family Insurance group, similar to The General and Homesite, acquired in 2012 and 2013, respectively. The combined equity of the merged entities is expected to be more than $9 billion.
Service, coverage, premium rates and claims handling under existing American Family insurance policies are unaffected by the merger with Main Street America.
Source: American Family Insurance
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