The Main Street America Group, a regional property/casualty insurer based in Jacksonville, Fla. that writes business up and down the East Coast, is expanding to the Midwest.
The insurer said it has agreed to acquire Great Lakes Casualty Insurance Co., a Michigan-domiciled private passenger auto insurance carrier based in Grand Rapids, Mich., from Newco Financial Holdings Inc., an insurance holding company based in Grand Rapids.
Great Lakes Casualty, founded by a group of independent agents in1997, is currently represented by 107 independent agents throughout Michigan that are also investors in the company. In 2007, Great Lakes generated approximately $9.5 million in direct written premium in Michigan and has more than 6,300 policyholders throughout The Wolverine State.
The transaction, which has been approved by the boards of directors of both companies, is subject to regulatory approval and shareholder approval and is expected to close in late summer 2008. Financial terms were not disclosed.
The company will remain branded as Great Lakes Casualty and continue to be based in Grand Rapids.
Tom Van Berkel, chairman, president and chief executive officer of MSA said the move is part of a long-term strategy of geographic diversification to increase scale.
Great Lakes President Keith Fry will join Main Street America to oversee the company’s operations in Michigan and will report to Doug Eden, Main Street America’s senior vice president of field operations.
The Main Street America Group is a super regional insurance company that operates four property-casualty insurance carriers: NGM Insurance Co., Old Dominion Insurance Co., Main Street America Assurance Co. and MSA Insurance Co. It sells commercial and personal insurance products, and fidelity and surety bond products.
MSA’s moore than $850 million in direct premium is written exclusively by nearly 1,200 independent insurance agents.
The 85-year-old company has regional offices in Jacksonville; Keene, N.H.; Richmond, Va.; and Syracuse, N.Y., and a claims reporting center in Auburn, Mass.
Source: The Main Street America Group
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