Grain Dealers Mutual Insurance Co., an Indiana-domiciled regional property/casualty insurance company, will become an affiliate of Main Street America. The agreement, which has been approved by the boards of directors of both companies, is subject to regulatory approval from the State of Indiana Department of Insurance, which is projected for early fourth quarter 2009.
Financial terms of the transaction were not disclosed.
“Our affiliation with Grain Dealers Mutual will complement our 86 years of successfully serving our ‘Main Street’ independent agent-customers and their customers (policyholders),” said Tom Van Berkel, chairman, president and CEO of Main Street America. “It will help us achieve our long-term strategy of sustained profitable growth by spreading risk and increasing scale through geographic diversification.”
Van Berkel says that Grain Dealers Mutual serves a market niche that is similar to Main Street America’s. “They are a good cultural fit for us.”
Grain Dealers Mutual, based in Indianapolis, Ind., is a 107-year-old multiline carrier that currently provides coverage in nine states, with its largest volume of business in North Carolina, Oklahoma, Mississippi and Indiana. In 2008, Grain Dealers Mutual generated nearly $33 million in direct written premium. Its product mix is 65 percent commercial, 35 percent personal. The company’s predominant line of business is commercial multi-peril, followed by homeowners and private passenger auto.
With the affiliation, Main Street America will be entering some new states, as well as increasing its presence in several existing states. Main Street America expanded its operations to the Midwest last year when it acquired Michigan-domiciled Great Lakes Casualty Insurance Co.
Grain Dealers Mutual president and chief executive officer Don Malcom will continue to oversee the company’s daily operations out of its Indianapolis headquarters. Grain Dealers Mutual will also maintain its regional service office in Greensboro, N.C.
“We will be affiliating with a financially strong organization that is 100 percent committed to the independent agency system,” Malcom said. “This will greatly benefit our network of independent agents and our policyholders.”
Aon Benfield Securities Inc. was responsible for arranging the affiliation discussions that led to the transaction between The Main Street America Group and Grain Dealers Mutual Insurance Company.
Based in Jacksonville, Fla., The Main Street America Group is a super regional insurance company that operates five P/C insurance carriers: NGM Insurance Co., Old Dominion Insurance Co., Main Street America Assurance Co., MSA Insurance Co. and Great Lakes Casualty Insurance Co. Main Street America operates in 24 states, including 16 East Coast states from Maine to Florida, as well as Arkansas, Arizona, Michigan, Nevada, Ohio, Oklahoma, Texas and Utah.
Source: The Main Street America Group,
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