Amerisafe, a specialty writer of hazardous workers' compensation insurance, has signed a letter of intent to acquire the workers' compensation business of Cooperative Mutual Insurance.
Amerisafe has said that its subsidiary American Interstate Insurance will assume all workers’ compensation policies written by Cooperative Mutual, effective 1 January 2011.
These policies will be serviced by Cooperative Insurance Agency, a wholly owned subsidiary of Cooperative Mutual.
Additionally, Amerisafe will obtain the renewal rights to these policies, which represent approximately $8m of in-force premium, and which will be produced and serviced by Cooperative Insurance Agency and its partner independent agencies.
Amerisafe CEO Allen Bradley said the company is enthusiastic about this strategic relationship with Cooperative Mutual and the opportunity to broaden exposure to the farmers’ cooperative business.
Cooperative Mutual CEO Jeffrey Kusch said this transaction is critical to the success of company’s pending merger with Austin Mutual and will pave the way for increased policyholder security in the future.