The Main Street America Group, a regional property casualty insurance carrier, and Austin Mutual Insurance Company, a Minnesota-domiciled regional P&C carrier, have reached an agreement to establish Austin Mutual as an affiliate of Main Street America.
The affiliation agreement, approved by the boards of directors of both companies, is subject to regulatory approval from the State of Minnesota Insurance Commissioner’s Office as well as policyholders of Austin Mutual. The closing is projected to occur by midyear 2012.
“The Main Street America Group’s long-term strategy to sustain profitable growth is focused on spreading risk and increasing scale through geographic diversification and we will take another step in this direction by establishing an affiliation with Austin Mutual,” said Tom Van Berkel, chairman, president and chief executive officer of Main Street America, a mutual insurance holding company based in Jacksonville, Fla.
Austin Mutual, founded in 1896, will maintain its brand name and continue to sell its products via its network of independent agents. Under terms of the affiliation, Austin Mutual chairman, president and chief executive officer Jeffrey Kusch will continue to oversee the company’s daily operations out of its Maple Grove, Minn., headquarters and report to Van Berkel.
There will also be a management and services agreement in place between the two companies and Main Street America will provide Austin Mutual with quota share reinsurance.
Over the past four years, Main Street America has established a strong Midwest presence via an acquisition of Michigan-domiciled Great Lakes Casualty Insurance Company in 2008, and two other affiliations: Indiana-domiciled Grain Dealers Mutual Insurance Company in 2009 and Minnesota-domiciled Spring Valley Mutual Insurance Company in 2011.
Source: The Main Street America Group
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