US-based insurance company Mercury General has entered into an agreement to acquire Workmen's Auto Insurance, for around $8m.
Based in Los Angeles, Workmen’s is an auto insurance company which underwrites non-standard personal auto insurance, predominantly in California.
The company reported statutory surplus of $9.2m, as of 30 June this year.
Workmen’s generated net premiums of $34.3m for the year-ended 31 December 2013, while it was $15.1m for the six-month period ended 30 June 2014.
The transaction, which is expected to be completed in the first quarter of 2015, is subject to regulatory approval.
Mercury General, along with its subsidiaries, offers personal automobile and homeowners insurance through a network of independent producers in US states.
The company provides collision, property damage liability, bodily injury (BI) liability, comprehensive, personal injury protection (PIP), underinsured and uninsured motorist, and other hazards to the automobile policyholders.