Austin Mutual Insurance has signed an agreement to become affiliate of the Main Street America Group following the approval by the boards of directors of both firms.
The affiliation agreement is subject to regulatory approval from the State of Minnesota Insurance Commissioner’s Office as well as policyholders of Austin Mutual while the closing is expected to occur by midyear 2012.
Austin Mutual was established in 1896 and will continue to sell its products via its network of independent agents while maintaining its brand name.
Under terms of the affiliation, Austin Mutual chairman, president and chief executive officer Jeffrey Kusch will report to Van Berkel and continue his role to oversee the firm’s daily operations at Maple Grove, Minnesota, US headquarters (suburban Minneapolis/St. Paul metro).
Main Street America has also signed management and services agreement to provide Austin Mutual with quota share reinsurance.
Main Street America has acquired Michigan-domiciled Great Lakes Casualty Insurance Company in 2008 and established a strong Midwest presence and two other affiliations Indiana-domiciled Grain Dealers Mutual Insurance Company and Minnesota-domiciled Spring Valley Mutual Insurance Company in 2009 and 2011 respectively.