Lansing, Mich.-based Accident Fund Insurance Company of America has entered into an agreement with the shareholders of CWI Holdings Inc. to purchase CWI and its wholly owned subsidiaries, including San Francisco-based CompWest Insurance Co.
Accident Fund is a workers’ compensation insurer that operates in , 43 states and the District of Columbia. CompWest was founded in 2004 as a California workers’ compensation insurer with more than 2,000 customers.
The acquisition complements Accident Fund’s workers compensation business, both strategically and geographically, the company said. The company has grown in the past seven years through a strategy that includes reaching out to markets all over the country. Accident Fund specializes in providing workers compensation coverage to small or mid-sized companies in the Midwest. There are no plans to merge operations of the two companies, but Accident Fund intends to work collaboratively with CompWest to meet the needs of businesses across the country. CompWest will operate independently, and its seasoned senior management team will continue to lead the direction of the company.
“We’ve expanded into other states since 2000 and were looking for the right partner in the West to ensure our continued growth,” said Elizabeth R. Haar, president of Accident Fund.
“We benefit from aligning with a company that is financially strong with an “A” rating from A.M. Best. Accident Fund knows our business; it provides significant financial strength to us, and it is a long-term investor in the workers compensation industry,” said Bill Mudge, president of CompWest Insurance Co., who will remain as president and CEO.
The purchase is anticipated to close before year-end, pending necessary approval from federal and state regulatory agencies. MTS Health Partners and StoneRidge Advisors were financial advisors to Accident Fund for the acquisition and Banc of America Securities LLC was the exclusive financial advisor to CWI and its shareholders, including Stone Point Capital LLC.
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