XL Group announced that its indirect wholly-owned subsidiary X.L. America has entered into a definitive agreement to acquire Allied International Holdings, the holding company of Allied Specialty Insurance, and T.H.E. Insurance Company, a leading insurer of the outdoor entertainment industry in the US.
"This acquisition of a leader in a niche specialty risk business with deep, long-standing client relationships and strong customer loyalty is perfectly aligned with the complex underwriting expertise of XL Catlin," commented Mike McGavick, CEO of XL.
"Now as part of the XL Catlin team, together, we look forward to new opportunities to further grow the business and build upon Allied’s exceptional customer service and solid underwriting performance."
T.H.E. Insurance Company, which had approximately $70m of gross written premium in 2014, provides general liability, workers comp, inland marine, auto-liability, and certain property insurance to clients in the amusement and entertainment industry, including carnivals, amusement parks, fairs and festivals, hot air balloons, fireworks, concessionaires, family entertainment centers and waterparks.
The privately held company was founded in 1983 and has an AM Best A- rating.
"After decades spent building our brand and deep knowledge of our clients’ needs, we’re proud of our track record and incredibly excited to be taking this step towards new growth and opportunities with XL Catlin," said Mary Chris Smith, Chairman and President of Allied Specialty Insurance.
"In XL Catlin we have found our partner for long-term success and resources to help us innovate for our clients’ evolving needs in this growing entertainment space."
The transaction is expected to close no later than the first quarter of 2016, pending receipt of anti-trust and regulatory approvals and the satisfaction of customary closing conditions.
Allied is the leading provider of property and casualty insurance coverage for the amusement and entertainment industry through its specialty insurance company, T.H.E. Insurance Company, its specialty insurance agency, Allied Specialty Insurance, Inc. and its independent brokerage channel.
The Company’s 3,000 clients include carnivals, concessionaires, amusement parks, waterparks, fairs and festivals, firework events and family entertainment centers.
XL Group, through its subsidiaries and under the XL Catlin brand, is a global insurance and reinsurance company providing property, casualty and specialty products to industrial, commercial and professional firms, insurance companies and other enterprises throughout the world.