Posted on 01 Apr 2010
Utica Mutual, principal member company of Utica National, has entered into an agreement to acquire Nationwide Holdings, Inc., the holding company for the Founders Insurance Company of Des Plaines, IL.
In making the announcement, Utica National Chairman of the Board and CEO Doug Robinson said, “The addition of Founders grows our organization: It adds market segments that we don’t currently offer, segments in which Founders has expertise and has written profitably over the years. We want to eventually be able to offer these classes to our agents and customers around the country.”
Founders has annual written premium of approximately $115 million in 47 states and the District of Columbia and is rated “A-” or “Excellent” by the A.M. Best Company. The Utica National companies have annual sales of over $600 million and are also rated “A-” or “Excellent” by A.M. Best.
Founders has approximately 200 employees, mostly at its offices in Illinois. The company, founded in 1901, specializes in writing non-standard personal automobile coverages, physical damage and liability, liquor liability and general liability coverages, and some other commercial coverages. Its private passenger automobile insurance are concentrated mostly in the Midwest, and liquor liability and general liability writings are nationwide.
The transaction has been approved by the Boards of Directors of both companies, and is subject to regulatory reviews and approvals. The sale is expected to close in the second quarter. Philo Smith & Co. of Stamford, CT acted as financial advisor to Utica National.
“The acquisition adds volume to our premium writings, and diversifies our business on both a product basis and a geographic basis. Founders is a very well run organization and we look forward to their continued success as a member of the Utica National Insurance Group,” said Mr. Robinson.
“We are delighted to be joining the Utica National organization,” said Jane Abed, President of Founders Insurance Company. “This acquisition will provide Founders with more resources to grow our business – from capital to expertise in other lines of business. Our agents stand to benefit as well, from having available the additional products that Founders will be able to offer as a result of its affiliation with Utica.”