National General Holdings Corp (NGHC), a New York-based specialty personal lines insurance holding company, has reached an agreement to buy Imperial Management, as part of its plan to further boost its business footprint.
Under the terms of the transaction, NGHC will acquire certain assets of Imperial, including its Fire & Casualty Insurance Company and National Automotive Insurance Company, ABC Insurance Agencies, and RAC Insurance Partners.
The acquirer will pay approximate GAAP book value of the combined operations, inclusive of $20m cash consideration for the operating companies, a distribution to the seller of certain Imperial invested assets, and a recapitalization of the insurance subsidiaries after closing.
The company said that the transaction has closed effective immediately.
National General chairman and CEO Michael Karfunkel said: "We are excited about the addition of the Imperial team and companies to our profitable and growing personal lines business."
"We believe Imperial is a natural fit with our recent homeowners expansion efforts, adding increased diversification to our product portfolio and enhancing our geographic footprint, and we expect the transaction to be immediately accretive to earnings.
"I want to thank and welcome the existing employees and management team, led by Imperial CEO H. Marcus Carter, Jr., whom we are looking forward to working side by side with in the integration of this transaction," Karfunkel added.
Imperial offers personal auto, commercial auto, homeowners, and Federal Flood policies through its four operating subsidiaries.
National General, through its subsidiaries, delivers personal and commercial automobile, recreational vehicle, motorcycle, homeowners, supplemental health, and other niche insurance products.
Image: National General Holdings agrees to purchase Imperial Management. Photo courtesy of: adamr/freedigitalphotos.net.