Donegal Group Inc. has announced the execution of an agreement pursuant to which it will acquire all of the outstanding stock of Michigan Insurance Co., a majority-owned stock subsidiary of West Bend Mutual Insurance Co. Michigan Insurance Co. writes various lines of property and casualty insurance exclusively in the state of Michigan. It had direct written premiums of $106.6 million and net written premiums of $26.7 million for the year 2009.
Michigan Insurance Co. currently participates in a quota share reinsurance agreement with West Bend, where West Bend assumes 75 percent of Michigan Insurance Co.'s business. Michigan Insurance Co. will enter into a 50 percent quota share agreement with third-party reinsurers, and a 25 percent quota share reinsurance agreement with Donegal Mutual Insurance Co. to replace the current quota share reinsurance agreement with West Bend as of the closing date of the acquisition.
Donegal Mutual Insurance Co. will include its assumed business from Michigan Insurance Co. in its pooling agreement with Atlantic States Insurance Co. Over time, Donegal Group Inc. and Donegal Mutual Insurance Co. will have the ability to reduce the level of external quota share reinsurance and thereby provide additional premium growth for the Donegal Insurance Group.
Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader
Your access to unlimited PropertyCasualty360 content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking insurance news and analysis, on-site and via our newsletters and custom alerts
- Weekly Insurance Speak podcast featuring exclusive interviews with industry leaders
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the employee benefits and financial advisory markets on our other ALM sites, BenefitsPRO and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
