American Modern Insurance Group, a wholly owned specialty insurance subsidiary of The Midland Company, and GuideOne Specialty Mutual Insurance Company of West Des Moines, Iowa, announced their intent to enter into a working agreement that will continue uninterrupted service to agents and policyholders in GuideOne’s motorsports lines of business.
Once the agreement is finalized, American Modern would begin by reinsuring GuideOne’s motorcycle, watercraft and snowmobile lines, with plans to move the business to their own paper once product filings and system needs have been addressed, according to John W. Hayden, Midland and American Modern president and CEO.
Recently, GuideOne announced plans to phase out several lines of business in order to focus on core operations, such as insuring churches and related businesses. Hayden said that decision created an opportunity for Midland to step in and work with GuideOne to ensure market continuity while rounding out its specialty line of products for motorized recreational vehicles.
“Since we’re already doing business with many of the agents writing the motorsports business, it is a natural fit for us,” Hayden said. “In fact, many of our General Agent partners played a key role in bringing GuideOne and us together on this, and we’re grateful for the confidence they have placed in us.”
GuideOne Chairman Darryl Hansen said that while the decision to phase out the motorsports lines was a difficult one, the assumption of the business by Midland’s specialty insurance subsidiary has left him confident that it can be accomplished with virtually no disruption to their business partners. “GuideOne and Midland have very similar cultures and commitments to our business partners,” Hansen said. “That’s one reason why we’re extremely pleased with this new venture and believe that it will continue to serve existing and future agents and policyholders well while providing a renewed focus on these lines of business.”
To help ensure that focus, American Modern will form a separate unit dedicated to providing motorsport coverages. Additionally, Hayden said that once appropriate contracting and licensing requirements are met, the motorsport products would be made available to current American Modern agents. “We are committed to developing indispensable relationships with our business partners, and we feel that the addition of motorcycle and snowmobile lines to our diverse specialty offerings helps us do just that,” Hayden said.
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