Westfield Insurance has signed a non-binding letter of intent with Golden Apple Holding Company (GAHC), which is interested in pursuing the purchase of all issued and outstanding capital stock of Beacon Insurance Company of America (Beacon), a wholly owned subsidiary of Westfield Insurance.
Westfield Insurance acquired Beacon in 1993 and has since converted insurance policies formerly written in Beacon to other insurance companies in the nine-member pool operating under the Westfield Insurance brand. Completion of the potential purchase of Beacon would bring GAHC property & casualty licenses in 11 states.
According to Westfield chief operating officer Robert Joyce, “The proposed sale of Beacon is consistent with initiatives to streamline operations and presents the opportunity for Westfield to capitalize on what has been a non- working asset.”
The letter of intent clears the way for GAHC to commence due diligence. No price or terms have been negotiated to date.
“The proposed sale has the potential to strengthen Westfield’s already strong balance sheet without impact on Westfield agents and policyholders,” Joyce added.
Ranked among the 50 largest insurance groups, Westfield Insurance writes over $1.1 billion of property & casualty insurance in 15 active states. Westfield, through Ohio Farmers Insurance Company, began operations in 1848 and is rated A (Excellent) by A.M. Best.
GAHC, incorporated in Florida in 2002, is a wholly owned subsidiary of Navigator Ventures Inc.
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