National General Holdings Corp. has entered into a renewal rights transaction with Nationwide Mutual Insurance Co. for its personal and commercial non-standard vehicle in-force policies.
National General will partner with Nationwide’s exclusive and independent agent force to sell its policies to their non-standard auto customers.
“Our transaction with Nationwide will give National General the opportunity to expand our non-standard auto business, an area of the market where we have a great amount of expertise, through Nationwide’s exemplary exclusive and independent agents,” said National General CEO Barry Karfunkel.
Karfunkel added that the transaction will add additional scale to one of its core products. “We look forward to working with Nationwide’s associates and agents and providing a smooth transition for its customers.”
Nationwide spokesperson Eric Hardgrove told Insurance Journal that the transaction, which relieves Nationwide from all non-standard auto business, takes effect Jan. 1, 2017. The renewal rights transaction will impact approximately 337,000 private passenger auto and about 26,000 non-standard commercial auto Nationwide policies.
Prior to renewal, current Nationwide nonstandard auto policyholders will receive a non-renewal letter with an offer for a replacement policy from National General, Hardgrove said. “Our members current coverage will remain in effect through the end of their current policy term and Nationwide will continue to support members until their policies come up for renewal,” he said.” This includes handling any claims that occur prior to the policy renewal. This transition will take place over the next two years.
Hardgrove also noted there will be a small percentage reduction in workforce across the country but that both insurers are working to find “landing spots for those associates” at either National General or other areas at Nationwide.
Financial terms of the transaction were not revealed.
National General Holdings Corp., headquartered in New York City, is a specialty personal lines insurance holding company. National General traces its roots to 1939, has a financial strength rating of A- (excellent) from A.M. Best and provides personal and commercial automobile, homeowners, umbrella, recreational vehicle, motorcycle, supplemental health, and other niche insurance products.
Nationwide, based in Columbus, Ohio, is one of the largest diversified insurance and financial services organizations in the U.S. and is rated A+ by both A.M. Best and Standard & Poor’s. The company provides auto, commercial, homeowners, farm and life insurance; public and private sector retirement plans, annuities and mutual funds; banking and mortgages; pet, motorcycle and boat insurance products.