National Farmers Union Insurance has an exclusive relationship with the National Farmers Union until 2050, providing access to members through roughly 400 agencies
Image: National General acquires National Farmers Union Insurance. Photo: Courtesy of Chaiwat/FreeDigitalPhotos.net.
National General Holdings Corp. (NASDAQ:NGHC) announced today that it has completed the previously disclosed acquisition of National Farmers Union Property and Casualty Company (“National Farmers Union Insurance”) from QBE North America. National Farmers Union Insurance is a P&C insurance company that predominantly writes personal and farm auto and farm and homeowners’ insurance in the Midwestern United States. National Farmers Union Insurance has an exclusive relationship with the National Farmers Union until 2050, providing access to members through roughly 400 agencies. The purchase price for the transaction was $52.8 million, subject to customary post-closing adjustments. The change to the closing purchase price from our preliminary estimate reflects balance sheet changes during the past three quarters from ordinary course business activity.
National General Chief Executive Officer Barry Karfunkel stated: “We are excited to continue to expand our personal lines portfolio through the acquisition of National Farmers Union Insurance. This acquisition fits well with our existing business mix, expanding our personal lines footprint in the Midwest and opening up a new distribution network through an exclusive partnership with the National Farmers Union. We expect to realize benefits from integrating the company onto our shared services platform and the geographic diversification the acquisition brings, and we expect the acquisition to be immediately accretive to earnings. We welcome the National Farmers Union Insurance team to National General and look forward to continuing the profitable growth of our combined organization.”
Source: Company Press Release