Sentry Buys Nonstandard Auto Insurer The Normal From American Household for $1.7B – Cyber Tech

Sentry Insurance coverage stated it’s shopping for nonstandard auto insurer The Normal from American Household Insurance coverage for about $1.7 billion to mark the most important acquisition within the firm’s 120-year historical past.

Sentry pays $1.1 billion in money and assume liabilities and required capital to up the full transaction to $1.7 billion. American Household acquired The Normal in 2012 when it purchased PGC Holdings Corp. and its subsidiaries for $239 million.

Mutual insurer Sentry of Stevens Level, Wisconsin stated it’s identified for enterprise insurance coverage but in addition has a nonstandard auto, bike, and off-road car insurer in its Dairyland model, serving clients via its independent-agent community. The acquisition of Nashville-based, direct-to-consumer (DTC) The Normal “brings collectively two of the strongest manufacturers within the nonstandard auto trade,” stated Pete McPartland, chairman and CEO of Sentry.

Sentry stated the manufacturers will function independently in the course of the integration course of. The 1,300 or so workers from The Normal will be a part of Sentry’s workforce of 5,000 on January 1, and can proceed to be based mostly in Nashville.

“We’ve discovered a strategic and cultural slot in Sentry, the place the expansion and momentum that The Normal has will proceed,” stated American Household Insurance coverage CEO Invoice Westrate. “We’re assured that Sentry’s experience, sturdy status on this market and employment tradition won’t solely proceed to serve The Normal’s clients effectively however will even ease the transition for The Normal’s workers.”

The transaction is predicted to shut by the top of the yr, pending regulatory approvals.

Associated: AM Greatest: Antagonistic Outcomes Linger For Nonstandard Auto

Late in August, American Household Insurance coverage Group’s Fundamental Road America Insurance coverage stated it is going to cease providing private traces insurance coverage in favor of a business traces technique.

Subjects
Mergers & Acquisitions
Carriers
Auto