Global Indemnity Agrees to Sell American Reliable Unit to Everett Cash Mutual

August 9, 2022
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Global Indemnity Group said it agreed to sell subsidiary American Reliable Insurance Company (ARIC) to Everett Cash Mutual Insurance Co. (ECM), and it completed the disposition of ARIC’s farm, ranch and equine book of renewal business to ECM.

Global Indemnity said the sale of ARIC is expected to be closed in or before the first quarter 2023.

In aggregate Global Indemnity will receive about $85 million, including the release of capital over the next 12 months that is currently supporting ARIC’s operations. GBLI will receive $30 million for the sale of renewal rights and will receive an amount equal to surplus when ARIC is sold. Until ECM acquires American Reliable, ECM will be providing Global Indemnity with 100% quota share reinsurance in respect of policies subject to the renewal rights agreement with ECM.

“Everett Cash Mutual Insurance Co., founded in 1913, is committed to serving the insurance needs of the agricultural community,” said ECM President and CEO, Randy Shaw. “ECM’s acquisition of ARIC will shift ECM from a regional carrier to a national provider with combined gross written premium approaching $200 million. We look forward to engaging with American Reliable employees and agents in the coming days.”

Global Indemnity in late 2021 exited ARIC’s manufactured homes and dwellings business, which was comparable in size to ARIC’s farm, ranch, and equine business and generated comparable proceeds to Global Indemnity upon its disposition.

David Charlton, Global Indemnity CEO, said the company will work closely with ECM to “assure that the renewal rights and acquisition transactions will be seamless for ARIC policyholders and ARIC’s agent partners.”

“In that regard, we encourage ARIC’s agents to partner with ECM, who is a carrier dedicated to processing farm, ranch, and equine insurance,” he said, adding that the transaction will allow Global Indemnity to “further sharpen its focus on the company’s core small and middle market commercial specialty casualty businesses.”

Global Indemnity Group said its four primary businesses are small- and middle-market commercial, programs, and reinsurance.

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