Assurant Specialty Property, a business segment of Assurant Inc., has agreed to sell its general agency business and associated insurance carrier, American Reliable Insurance Co., to Global Indemnity Group Inc., the U.S. subsidiary of Dublin-based Global Indemnity, for approximately $114 million in cash.
Global Indemnity will also assume approximately $280 million in customary insurance related liabilities, obligations, and mandates.
American Reliable, which is based in Scottsdale, Arizona and has an office in Omaha, Nebraska, writes specialty personal lines and agricultural property and casualty insurance through a network of general and independent agents. Its product lines include manufactured housing, watercraft, recreational vehicles, farm and ranch, and federal flood insurance. American Reliable recorded $250 million of net earned premiums in 2013.
Global Indemnity plc provides both admitted and non-admitted specialty property and casualty insurance coverages in the United States, as well as reinsurance worldwide. The holding company was formed in 2010 under the laws of Ireland. Its U.S. operations are composed of six insurance companies: Penn-America Group, Diamond State Group, United National Group, J.H. Ferguson & Associates/VacantExpress.com and Collectibles Insurance Services. These firms have offices in Philadelphia, Atlanta, Los Angeles, Chicago and Hunt Valley (Maryland).
Its non-U.S. operation is Global Indemnity Reinsurance Co. Ltd.
Cindy Valko, Global Indemnity’s CEO, said American Reliable enhances Global’s position in the U.S. as a specialty personal, agricultural and commercial property and casualty insurance provider. “The combination of American Reliable with Global’s Penn-America, United National, and Diamond State operations will provide Global’s and American Reliable’s employees and wholesale and MGA partners with complementary products, infrastructure and underwriting expertise,” she said.
Assurant Specialty Property sells insurance services in partnership with mortgage lenders, property managers, financial institutions, manufactured home sellers, auto finance companies and their customers. Services include insurance tracking and management and lender-placed homeowners insurance, property preservation services, and property and personal coverage such as renters and flood insurance.
“Assurant Specialty Property is focused on accelerating our momentum within the mortgage and multifamily housing industries,” said Gene Mergelmeyer, president and CEO of Assurant Specialty Property. “The sale of American Reliable Insurance Co. allows us to better align our portfolio of businesses, increase resources allocated toward these markets and strengthen our core business.”
With approximately 17,500 employees, Assurant has approximately $30 billion in assets and $9 billion in annual revenue.
The transaction is expected to close following regulatory approval and satisfaction of customary closing conditions.
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