New York-based Utica Mutual Insurance Co. will acquire Founders Insurance Co. of Des Plains, Ill. for an undisclosed sum.
Founders has annual premium of approximately $115 million in 47 states and the District of Columbia. Founders employs 200 people, mostly in Illinois, and specializes in writing non-standard auto coverage, liquor liability and general liability coverage. Most of its automobile business is concentrated in the Midwest.
Utica Mutual has annual sales of over $600 million, is headquartered in New Hartford, N.Y. and employs a total of 1,250 people at seven regional offices and three claims offices.
Both companies’ products are distributed through independent insurance agencies.
Utica Chairman and CEO J. Douglas Robinson said the transaction will help Utica to grow its footprint. “The addition of Founders grows our organization; it adds to our premium writings and diversifies our business on both a product basis and geographic basis,” he said.
Following the announcement, A.M. Best Co. said that the financial strength rating for both companies are unchanged.
The deal, which is subject to regulatory approval, is expected to close in the second quarter.
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