American Family Insurance has inked an acquisition agreement to purchase direct homeowners insurer Homesite Group for approximately $616m.
Headquartered in Boston, Homesite is a direct writer of homeowners, renters and condominium insurance using the internet, call centers and technology-enabled platform solutions.
Homesite, which was established in 1997, is owned by multiple entities and individuals including Alleghany, Metalmark Capital through its management of the Morgan Stanley Capital Partners funds and The Plymouth Rock.
This development comes after American Family acquired non-standard auto insurer Permanent General Companies in 2012.
The latest acquisition is subject to regulatory approval and is expected to be finalized by the end of this year.
The deal will complement American Family’s agent network with direct channel options to serve a different customer segment and strengthen its position.
American Family chairman and CEO Jack Salzwedel said: "Homesite allows us to serve a different segment of customers who want to use direct channels to handle their insurance needs. We want to provide options for all customer preferences."
American Family plans to operate Homesite as a separate and distinct entity, while maintaining its current operations and business partner relationships.
The company offers auto, home, business, farm/ranch and life insurance in 19 states through its network of 3,500 agents.