State Automobile Mutual Insurance Company, based in Columbus, Ohio, said it has agreed to acquire the Beacon Insurance Group, headquartered in Wichita Falls, Texas. Terms of the deal were not released.
The Beacon Insurance Group writes approximately $50 million in direct written premium through more than 300 independent agents in Arkansas and Texas, State Automobile said. With the acquisition, Texas will become State Auto's 29th state of operation, the company added.
The deal is expected to be completed in the first quarter of 2007, subject to regulatory approval.
“Texas is the second most populous state and fourth largest insurance market in the United States. It offers a tremendous opportunity for State Auto to grow profitably,” said Robert P. Restrepo Jr., State Auto chairman, president and chief executive officer, in a statement. “The addition of Beacon to the State Auto family will provide us with a base of operations in the growing Southwest market. Our positive experience with past acquisitions makes us confident that Beacon's policyholders, independent agency force and associates will find the transition seamless.”
Lyndell Haigood, Beacon's president, said: “We are convinced that joining State Auto is beneficial for all of our constituencies. We write the same types of business, with comparable agency forces and similar corporate cultures. We're looking forward to what we believe will be a winning combination.”
State Auto is engaged primarily in writing personal and commercial insurance products through more than 22,500 independent agents associated with approximately 3,000 agencies in 28 states. Additional information on State Auto can be found at www.stateauto.com.
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