Posted on 16 May 2012
Adirondack Insurance Exchange (AIE), Financial Stability Rating(R) of A, Exceptional, and Mountain Valley Indemnity Company (MVIC), Financial Stability Rating(R) of A' (A Prime), Unsurpassed, have created a separate, stand-alone multi-state personal lines platform that joins the writing capacity of AIE with the geographic footprint of MVIC. As a result of the transaction, AIE and MVIC will be positioned for further organic growth and expansion as a dedicated personal lines platform with a geographic footprint that covers 22 states.
While AIE has writing capacity, it is licensed only in New York. MVIC is licensed in 22 states in addition to New York. By acquiring and reinsuring MVIC, AIE will have exposure, through reinsurance, to business in jurisdictions other than New York, thereby diversifying AIE's geographic risk profile. Separate and apart from any benefits of this transaction for AIE or other members of the Tower holding company system, this transaction will be a positive development for MVIC.
By joining MVIC's licenses with AIE writing capacity, the sale to AIE will give MVIC a market niche that is unique in the Tower holding company system, and should cause it to feature prominently in future growth strategies. The combined personal lines platform of AIE and MVIC will play central role in personal lines strategic development, initially in the northeast, with potential for expansion into other areas.
About Tower Group Companies
Tower Group Companies is one of the 50 largest providers of property and casualty insurance products and services in the U.S. Through its insurance company subsidiaries, Towerprovides personal and commercial insurance for small to medium-sized businesses through its network of retail and wholesale agents across the country.