National General Holdings Corp. Announces Agreement to Acquire National Farmers Union Insurance
November 13 2018 - 4:05PM
National General Holdings Corp. (NASDAQ:NGHC) announced today that
it has agreed to acquire National Farmers Union Property and
Casualty Company (“National Farmers Union Insurance”) from QBE
North America, an integrated specialist insurer. National Farmers
Union Insurance is a Wisconsin domiciled P&C insurance company
that predominantly writes personal and farm auto and farm and
homeowners’ insurance in the Midwestern United states. The company
has an exclusive agreement and relationship with National Farmers
Union until 2050, providing access to members through roughly 400
agencies. The estimated purchase price for the transaction is $43
million. The transaction is expected to close in the first half of
2019, subject to customary closing conditions and regulatory
approvals.
National General Chief Executive Officer Barry Karfunkel stated:
“We are excited to continue to expand our personal lines portfolio
through the acquisition of National Farmers Union Insurance. This
acquisition fits well with our existing business mix, expanding our
personal lines footprint in the Midwest and opening up a new
distribution network through an exclusive arrangement with the
National Farmers Union. We expect to realize benefits from
integrating the company onto our shared services platform and the
geographic diversification the acquisition brings, and we expect
the acquisition to be immediately accretive to earnings. We look
forward to welcoming the National Farmers Union Insurance team to
National General.”
Kramer Levin Naftalis & Frankel LLP acted as legal counsel
to National General in connection with the transaction.
About National Farmers Union InsuranceBased in
North Dakota, National Farmers Union Insurance has been serving
rural America since 1945 and has approximately 60 employees.
National Farmers Union Insurance wrote $175 million in gross
written premium in 2017, with the majority of premium written in
personal/farm auto (58% of 2017 GWP) and farm/homeowners (33% of
2017 GWP) lines. The company is licensed in 49 states with a heavy
concentration of business in the Midwest: North Dakota, Colorado,
Montana, Minnesota, Kansas, Wyoming, Nebraska and Utah.
About National General Holdings Corp.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.
Forward Looking Statements
This news release contains “forward-looking statements” that are
made pursuant to the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995. The forward-looking
statements are based on the Company’s current expectations and
beliefs concerning future developments and their potential effects
on the Company. Forward-looking statements can generally be
identified by the use of forward-looking terminology, such as
“may,” “will,” “plan,” “expect,” “project,” “intend,” “estimate,”
“anticipate” and “believe” or their variations or similar
terminology. There can be no assurance that actual developments
will be those anticipated by the Company. Actual results may differ
materially from those expressed or implied in these statements as a
result of significant risks and uncertainties, including, but not
limited to, non-receipt of expected payments from insureds or
reinsurers, changes in interest rates, a downgrade in the financial
strength ratings of our insurance subsidiaries, the effect of the
performance of financial markets on our investment portfolio, our
ability to accurately underwrite and price our products and to
maintain and establish accurate loss reserves, estimates of the
fair value of investments, development of claims and the effect on
loss reserves, large loss activity including hurricanes and
wildfires, the cost and availability of reinsurance coverage, the
effects of emerging claim and coverage issues, the effect of
unpredictable catastrophic losses, changes in the demand for our
products, our degree of success in integrating acquired businesses,
the effect of general economic conditions, state and federal
legislation, the effects of tax reform, regulations and regulatory
investigations into industry practices, risks associated with
conducting business outside the United States, developments
relating to existing agreements, disruptions to our business
relationships with third party or vendor agencies, breaches in data
security or other disruptions involving our technology, heightened
competition, changes in pricing environments, and changes in asset
valuations. The forward-looking statements contained in this news
release are made only as of the date of this release. The Company
undertakes no obligation to publicly update any forward-looking
statement except as may be required by law. Additional information
about these risks and uncertainties, as well as others that may
cause actual results to differ materially from those projected is
contained in the Company’s filings with the Securities and Exchange
Commission.
Investor ContactChristine WorleyDirector of
Investor RelationsPhone: 212-380-9462Email:
Christine.Worley@NGIC.com
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