Posted on 03 Nov 2010
Ohio Mutual Insurance Group (OMIG) today announced that it has reached agreement to acquire N.E. Corporation and its wholly-owned subsidiary Casco Indemnity Company, a property & casualty insurer located in Saco, ME. Agreement between the parties was concluded on November 1, and the transaction is expected to be completed by the end of the year.
“This acquisition is an exciting milestone for Ohio Mutual, as it is our largest and first out-of-state acquisition in the company’s 109-year history,” said Jim Kennedy, OMIG President & CEO. “We have maintained vigilance within our industry for several years, looking for an ideal organization to add to the OMIG family, and we believe the acquisition of Casco will generate significant long-term advantages and benefits for the policyholders, agents, and associates of both organizations.”
“We are confident that Casco represents a good fit for Ohio Mutual – in terms of our long-term strategic plan and both companies’ mission, culture, and values,” Kennedy added.
N.E. Corporation is a holding company jointly owned by the Hingham Group (headquartered in Hingham, MA), and Phenix Mutual Fire Insurance Company (headquartered in Concord, NH).
Casco Indemnity Company was formed in 1985 by a consortium of seven New England insurers, and currently offers commercial auto, personal auto, and personal umbrella insurance in six states (ME, RI, CT, VT, NH, SC) through a network of 140 independent agents. The company had $17.4 million in direct written premium in 2009, reported a statutory surplus of $8.8 million at the end of 2009, and currently holds a B+ rating from A.M. Best Co. The company currently has 23 associates.
“We are pleased that we have reached this agreement with OMIG,” said Steve Chevalier, Hingham Group CEO. “Since its formation in 1985, Casco’s mission has been to support its mutual insurance company owners in their objective to preserve and enhance their property writings in New England. We are confident that this sale will allow Casco to be able to continue and expand upon this mission.”
Completion of the transaction is contingent upon receiving approval from the Maine Bureau of Insurance and Ohio Department of Insurance. Under terms of the acquisition, the assets and liabilities of N.E. Corporation / Casco would be pooled with the other companies in the Ohio Mutual Insurance Group beginning in 2011.
Ohio Mutual Insurance Group, founded in 1901 and based in Bucyrus, Ohio, partners with nearly 300 independent agencies to distribute quality property and casualty insurance products throughout Ohio, Connecticut, Indiana, and Rhode Island. It has maintained a rating of “A / Stable” from A.M. Best Co. for 18 consecutive years. In 2009, Ohio Mutual was honored with the National Company Award of Excellence by the nation’s largest association of independent insurance agents and was recognized in 2009 & 2010 as one of the Ward’s 50 top insurance companies in the United Sta