First Acceptance Corp. Acquires Texas Agency

January 26, 2005

First Acceptance Corporation, a provider of non-standard personal automobile insurance, announced it has acquired the assets of San Marcos, Texas-based HCS Claims Service Inc. dba Heritage Claims Services Inc., and LGNP Enterprises Inc. dba America’s Low Cost Insurance Agencies.

Under the terms of the transaction, Tenn-based First Acceptance paid LGNP Enterprises Inc. a total of $4.0 million in cash for the assets of 15 company-owned retail stores and the claims operations of the managing general agency (MGA) operating under the America’s Low Cost Insurance Agencies trade name.

Steve Harrison, president and chief executive officer of First Acceptance Corporation, said the operations being acquired are located primarily in the Houston, Austin and Dallas markets. The retail agencies produce approximately $7.7 million in annual non-standard automobile insurance premiums. Operating as an MGA in Texas, LGNP Enterprises Inc. insured the business through a Texas county mutual insurance company.

First Acceptance will continue to use a Texas county mutual insurance company as the direct insurance company, but will assume 100 percent of the business from the county mutual.

Was this article valuable?

Here are more articles you may enjoy.