CFM Insurance Inc., a mutual insurance company headquartered in Concordia, Missouri, has finalized its acquisition of Cornerstone National Insurance Co., a stock company based in Columbia, Missouri.
With this acquisition, many synergies and efficiencies will be created in management, product offerings, corporate culture, and the overall approach to doing business, according to the acquisition announcement. The new group will maintain two separate companies all owned by the mutual company policyholders.
“This was a very unique and creative purchase of a stock company by a mutual insurance company. We had the privilege of recognizing the challenges of this acquisition the entire way. Great things rarely come easy, but we are very optimistic of the future to come,” CFM President and CEO Jake Black said in the company’s announcement. “CFM enjoys a strong history and philosophy of doing what is in the best interests of policyholders and our independent agent partners. We remain focused on creative thinking to help meet the needs of all policyholders, while providing a solid surplus aided with conservative and creative investments.”
The new direction of CNI will yield the introduction of packaged business in the territories where it currently writes coverage. The focus will be directed to the central Midwest region to provide logistical efficiencies and a key knowledge of the market. This focus will help to stabilize and profitably grow the book of business for CNI in a similar manner of success realized by the policyholders of CFM.
CFM Insurance Inc. was formed in 1869. The company is celebrating 150 years of business protecting the families and businesses of Missouri. As a Missouri exclusive mutual, CFM has grown to be one of the largest mutual insurance companies that only writes business in the single state. The company has approximately 26,000 policies with annual written premium over $30 million.
Cornerstone National Insurance Co. was founded in 1997 as a stock company to provide automobile insurance in several states. The company ended 2018 with over $23 million in written premium and 17,500 policies. CNI is licensed to do business in 20 states.
Source: CFM Insurance
Topics Mergers & Acquisitions Missouri
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