Everett Cash Mutual Insurance Company Acquires American Reliable’s Farm, Ranch and Equine Business | Business Insurance

know about this Everett Cash Mutual Insurance Company Acquires American Reliable’s Farm, Ranch and Equine Business

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BALA CROP, Pa.–(COMMERCIAL WIRE)–Global Indemnity Group, LLC (NYSE:GBLI) (“GBLI”), announced today that American Reliable Insurance Company (“ARIC”), a subsidiary of GBLI, has completed the farm, ranch and equine renewal book disposition of ARIC. business to Everett Cash Mutual. GBLI also announced that it has agreed to sell ARIC to Everett Cash Mutual (ECM), which, subject to regulatory approvals and customary transactional conditions, is expected to close in the first quarter of 2023 or sooner. GBLI and ECM anticipate that the renewal rights and acquisition transactions will further enhance ARIC’s provision of products and services to both ARIC policyholders and ARIC member agencies.

ECM President and CEO Randy Shaw stated that “Everett Cash Mutual Insurance Co., founded in 1913, is committed to serving the insurance needs of the farming community.” Shaw added that “ECM’s acquisition of ARIC will change ECM from a regional operator to a national provider with a combined gross written premium of nearly $200 million. We look forward to interacting with American Reliable employees and agents in the coming days.”

David Charlton, CEO of GBLI, commented: “GBLI will work closely with ECM to ensure that renewal rights and vesting transactions are transparent to ARIC policyholders and ARIC agent partners. In that sense, we encourage ARIC agents to partner with ECM, which is a company dedicated to processing farm, ranch and equine insurance.” Charlton added that, “These transactions will also allow GBLI to further sharpen its focus on the company’s core small and medium-sized special commercial accident businesses.”

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Transaction information:

In total, GBLI will receive approximately $85 million, including the release of capital currently supporting ARIC’s operations (over the next 12 months). GBLI will receive $30 million from the sale of the renewal rights and will receive an amount equal to the surplus when ARIC is sold. Until ECM acquires American Reliable, ECM will provide GBLI with 100% quota share reinsurance with respect to policies subject to the renewal rights agreement with ECM.

GBLI exited ARIC’s manufactured home and housing business in the fourth quarter of 2021, which was comparable in size to ARIC’s farm, ranch and equine business and generated earnings comparable to GBLI’s following its disposition.

Fox Paine & Company and Merger & Acquisition Services, Inc. acted as financial advisors to GBLI in connection with the farm, ranch and equine transactions, as well as the manufactured homes and homes. Skadden, Arps, Slate, Meagher & Flom LLP served as legal counsel to GBLI in connection with both transactions. Philo Smith Capital Corporation served as financial advisor to ECM and Mette, Evans & Woodside served as legal advisor.

About Global Indemnity Group, LLC and its subsidiaries

Global Indemnity Group, LLC (NYSE:GBLI), through its various wholly owned direct and indirect subsidiary insurance companies, provides both admitted and non-admitted specialty property and casualty insurance coverage and individual policyholder coverage in the United States. States, as well as reinsurance throughout the world. . The four main business units of Global Indemnity Group, LLC are:

  • Small to medium market commercial business

  • commercial specialty business

  • programs

  • Reinsurance

For more information, visit the Company’s website at gbli.com.

About Everett Cash Mutual

Founded in 1913, Everett Cash Mutual Insurance Co. is a mutual property/casualty insurer focused on serving the agricultural and agribusiness sector. ECM provides state-of-the-art products and technology to support your marketing territory. ECM is rated “Excellent” by AM Best.

forward-looking information

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements include all statements that do not relate solely to historical or current facts, and can often be identified by the use of words such as “expect”, “intend”, “plan”, “believe”, “trends” and similar expressions of a future or forward-looking nature. The forward-looking statements contained in this press release[1] they do not address a number of risks and uncertainties. Investors are cautioned that Global Indemnity’s actual results may differ materially from estimates expressed, implied or projected in forward-looking statements. These statements are based on estimates and information available to us at the time of this press release and involve a number of risks, uncertainties and assumptions, including those described in Global Indemnity’s filings with the Securities and Exchange Commission. Investors are cautioned that Global Indemnity cannot predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make. In light of these risks, uncertainties and assumptions, the forward-looking events and circumstances discussed in this press release may not occur and actual results could differ materially and adversely from those anticipated or implied by forward-looking statements. All forward-looking statements in this press release are based on information available to Global Indemnity as of the date hereof. Please refer to Global Indemnity’s filings with the Securities and Exchange Commission for a discussion of risks and uncertainties that could affect us and for a more detailed explanation of forward-looking statements. Global Indemnity undertakes no obligation to update any forward-looking statements provided to reflect events that occur or circumstances that exist after the date they are made.

[1] Released pursuant to the “safe harbor” provisions of Section 21E of the Securities Exchange Act of 1934.

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