National Lloyds is a specialty property insurer that mainly serves owners of mobile homes and lower value homes
US financial holding company Hilltop has agreed to sell National Lloyds, its fully-owned subsidiary, to Align Financial, in an all-cash deal worth about $150m.
Based in Texas, National Lloyds is a specialty property insurer that mainly caters to owners of mobile homes and lower value homes.
The specialty property insurer operates two subsidiaries, National Lloyds Insurance and American Summit Insurance for writing premiums.
Apart from the two insurance carrier subsidiaries, the specialty property insurance company has a fully-owned agency and services businesses, which include Nalico General Agency.
Headquartered in Dallas, the insurer is said to have a distribution network of nearly 3,900 independent agencies and active licenses in more than 40 US states.
Hilltop president and CEO Jeremy Ford said: “We believe the sale of National Lloyds allows Hilltop to better focus our resources on growing our core operating companies of PlainsCapital Bank, PrimeLending, and HilltopSecurities.
“I have worked closely with National Lloyds since Hilltop first acquired it in 2007, and have remained proud of the company, its exceptional employees, and its strong results throughout that time.”
Apart from the agreement with Hilltop, Align Financial has concurrently signed a deal to sell the two National Lloyds’ insurance carrier subsidiaries to ReAlign Insurance in an all-cash transaction. Financial terms of the deal were not disclosed.
ReAlign is an insurance holding company created by ReAlign Capital Strategies and MGI Insurance, a private investment fund.
As part of the deal, National Lloyds’ agencies retained by Align Financial, or their affiliates, will sign multiple agreements with the insurance carriers of the specialty property insurer. The agreements will enable the agencies to offer services, which includes serving as a program underwriting manager and claims administrator for the carriers upon completion of the transaction.
Align Financial CEO comments on National Lloyds acquisition
Align Financial CEO Kieran Sweeney said: “During the course of its 70-year history, National Lloyds has built excellent product offerings in the specialty personal property marketplace.
“We believe Align’s unrelenting focus on superior underwriting, delivering quality specialty insurance products and using advanced technologies to enhance the customer experience, coupled with our relationship-based culture, will be a perfect fit for National Lloyds’ employees, clients and independent agents.”
The Hilltop-Align Financial transaction, which is subject to receipt of required regulatory approvals and customary closing conditions, is expected to be completed in the second quarter of this year.