Insurer X.L. America Inc. has agreed to acquire Allied International Holdings Inc., the Florida-based holding company of Allied Specialty Insurance Inc. and T.H.E. Insurance Co., a leading insurer of the outdoor entertainment industry in the U.S.
Allied is a leading provider of property/casualty insurance coverage for the amusement and entertainment industry through its specialty insurance company, T.H.E. Insurance Co., its specialty insurance agency, Allied Specialty Insurance, Inc. and its independent brokerage channel.
T.H.E. Insurance Co., which had approximately $70 million of gross written premium in 2014, provides general liability, workers’ comp, inland marine, auto-liability, and certain property insurance to 3,000 clients in the amusement and entertainment industry, including carnivals, amusement parks, fairs and festivals, hot air balloons, fireworks, concessionaires, family entertainment centers and waterparks.
The privately held company was founded in 1983 and has an A.M. Best A- rating.
“After decades spent building our brand and deep knowledge of our clients’ needs, we’re proud of our track record and incredibly excited to be taking this step towards new growth and opportunities with XL Catlin,” said Mary Chris Smith, chairman and president of Allied Specialty Insurance Inc.
“This acquisition of a leader in a niche specialty risk business with deep, long-standing client relationships and strong customer loyalty is perfectly aligned with the complex underwriting expertise of XL Catlin,” said Mike McGavick, CEO of XL.
Last November, Hamilton Insurance Group agreed to acquire Sportscover Underwriting Limited, a Lloyd’s managing agent which manages Syndicate 3334, and Kinetic Insurance Brokers Limited, a Lloyd’s insurance broker.
Last year, Allianz sold off its Fireman’s Fund personal lines business to Ace Insurance but folded the Fireman’s Fund commercial business including the entertainment division into its Allianz Global Corporate & Specialty (AGCS).
Also last year, Everest Re Group formed Indianapolis-based Specialty Insurance Group (SIG) to provide custom programs for the sports, leisure and entertainment markets.
Terms of the XL-Allied deal were not disclosed. The transaction is expected to close before or by the end of the first quarter of 2016.
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