Atlanta-based Atlantic American Corp. has agreed to sell its property/ casualty unit to Columbia Mutual Insurance Co. of Columbia, Missouri, part of the Columbia Insurance Group.
The regional property and casualty business unit being sold consists of Georgia Casualty & Surety Co., Association Risk Management General Agency and Association Casualty Insurance Co.
The purchase price, to be paid in cash, is equal to the adjusted statutory capital and surplus, as defined, of each company at December 31, 2007, plus $4.5 million.
The transaction is subject to regulatory approvals and is expected to close in the first quarter of 2008.
Benfield Advisory, Inc. served as financial advisor to Atlantic American Corporation with respect to this transaction.
Columbia Mutual Insurance Company is part of the Columbia Insurance Group which is a regional multi-line insurance carrier marketing its products through a network of approximately 650 independent agencies in the Midwest and Southeastern United States. Gross written premiums in 2007 are estimated at $220 million with total assets of approximately $400 million.
Atlantic American is an insurance holding company involved through its subsidiary companies in specialty markets of the life, health, property and casualty insurance industries. Its principal subsidiaries include American Southern Insurance Co., American Safety Insurance Co., Bankers Fidelity Life Insurance Co., Georgia Casualty & Surety Co., Association Risk Management General Agency, Association Casualty Insurance Co. and Self-Insurance Administrators, Inc.
Ratings firm A.M. Best Co. said it anticipates that the ratings of Columbia Group will not change as a result of the acquisition. However, A.M. Best said it would continue to analyze the implications and, following the close of the transaction, will reevaluate whether the current positive outlook of Columbia Group will be affected.
Sources: Atlantic American
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