Dublin-based Global Indemnity plc’s U.S. affiliate said it has completed its previously-announced purchase of American Reliable Insurance Co. from Assurant Inc.
In a transaction valued at approximately $394,000,000, Global Indemnity’s U.S. division said it paid $114 million in cash to Assurant at closing and assumed approximately $280,000,000 in customary insurance related liabilities, obligations, and mandates.
American Reliable, with facilities in Scottsdale, Arizona and Nebraska, writes specialty personal lines and agricultural property/casualty insurance through 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.
“The combined company brings great value to its employees and wholesale and MGA partners, with its complementary products, infrastructure and underwriting expertise,” Cindy Valko, Global Indemnity’s chief executive, said in the announcement of the closing.
Global Indemnity plc provides both admitted and non-admitted specialty property/casualty insurance coverages in the U.S., 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.
The seller, Assurant Specialty Property, sells 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, when the deal was first announced in October. “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.”
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