NU Online News Service, March 30, 3:43 p.m. EDT

Utica Mutual Insurance Company has announced it has an agreement to acquire Nationwide Holdings Inc., the holding company for Founders Insurance Company of Des Plaines, Ill.

New Hartford, N.Y.-based Utica, a principal member company of the Utica National Insurance Group, did not disclose the purchase price.

It said Founders specializes in writing non-standard automobile coverages, liquor liability and general liability coverages, and some other commercial coverages.

Founders has annual written premium of approximately $115 million in 47 states and the District of Columbia and is rated "A-minus" or "Excellent" by the A.M. Best Company.

Utica National companies have annual sales of over $600 million and are also rated "A-minus" or "Excellent" by A.M. Best.

The transaction has been approved by the boards of directors of both companies and is subject to regulatory reviews and approvals. The sale is expected to close in the second quarter.

Philo Smith & Co. of Stamford, Conn., acted as financial advisor to Utica National.

Founders has approximately 200 employees, mostly at its offices in Illinois. Although its automobile insurance writings are concentrated in the Midwest, its liquor liability and general liability writings are nationwide, Utica said.

Utica employs 1,250 people at 11 locations around the country, including its home office in New Hartford, seven regional offices and three claims offices.

"Both of our organizations sell their products through independent insurance agents, which is a great starting point," said J. Douglas Robinson, chairman and chief executive officer of the Utica National Insurance Group. "Our goal is to keep Founders' operations and identity and grow its footprint. We plan no appreciable changes in employment at this time."

"The addition of Founders grows our organization: it adds to our premium writings and diversifies our business on both a product basis and a geographic basis. Founders is a very well-run organization, and we look forward to the company's continued success as a member company of the Utica National Insurance Group," Mr. Robinson said.

Jane M. Abed, president of Founders Insurance, said, "This acquisition will provide Founders with more resources to grow its business--from capital to expertise in other lines of business. Our agents stand to benefit from the additional products Founders will be able to offer them."