Farmers Insurance Group, a personal lines property and casualty insurance group, has announced that all regulatory approvals have been obtained for Truck Insurance Exchange to acquire the rights to access renewals on Zurich North America Commercial's Small Business Solutions book of business.
In addition, the management of the Small Business Solutions (SBS) book of business will transfer to Farmers Group.
The SBS book consists of four primary lines of business: business owner’s policy (BOP) for property, general liability and umbrella, commercial auto and workers’ compensation – and is sold in 49 states plus the District of Columbia.
Although the management of the SBS book will shift to Farmers immediately, the full transition of the business to Farmers Business Insurance is estimated to occur within 18 to 24 months.
In the interim, Zurich companies that underwrite the SBS book and the Truck Insurance Exchange will enter into a reinsurance arrangement, through which SBS premium will continue to be written on its current paper, but fully ceded to the Truck Insurance Exchange. Other terms of the proposed transaction were not disclosed.
Paul Hopkins, CEO of Farmers Group, said: We are pleased that we can now go forward with the integration of Farmers Business Insurance and Zurich SBS. It will enhance the depth and breadth of products available to customers, create an enhanced distribution capability that competes even more effectively in both the exclusive agent and independent agent channels, and will benefit our entire organization.