The Hartford has agreed to acquire Foremost Insurance branded small commercial lines business from Farmers.
The Hartford is acquiring the renewal rights on $200 million in small commercial lines premium sold through about 5,000 independent agents and brokers. The business consists of the three primary lines of business underwritten by Foremost Insurance Group: business owner’s policy for property, general liability and umbrella; commercial auto; and workers’ compensation.
The transaction marks the exit of Foremost from the commercial lines business to focus on its personal lines business. Foremost entered the commercial lines business in 2013, when it took over the Zurich Small Business program.
Foremost’s parent company, Farmers, will continue to write commercial lines accounts under the Farmers brand with its exclusive agents, according to the company.
“This move provides us the flexibility to increase our focus and invest additional resources on the small business segment, which we remain very committed to, through our vast network of Farmers agents,” said Sharon Fernandez, head of Business Insurance for Farmers Insurance.
Foremost, founded in 1952 and headquartered in Grand Rapids, Michigan, is a leader in specialty insurance for mobile homes, motor homes, travel trailers and specialty dwellings.
Terms of the transaction were not disclosed. The Hartford said the deal will not have a material impact on its financial results.
“This renewal rights agreement further strengthens The Hartford’s market-leading position in small business, and also provides an opportunity to deepen and broaden our distribution network,” said Stephanie Bush, The Hartford’s head of Small Commercial and Personal Lines.
The book of business is nationwide and aligns with its small-business appetite and growth strategy, The Hartford said.
The insurer said there is significant overlap in the agency forces but that it welcomes those agents that do not currently have a contract with The Hartford.