Jeff Hunt, executive vice president of business development for Narragansett, says these types of transactions, along with organic growth, have allowed the Rhode Island, Massachusetts, New York and New Jersey property insurer to grow rapidly.

“Of the policies State Auto is leaving in Rhode Island, about 80 percent are with agents that have a relationship with us,” Hunt says. “In Massachusetts this allows us to create new agent partners in the western part of the state.”

Kyle Anderson, spokesman for State Auto, says the decision to leave Rhode Island and the property market in Massachusetts has nothing to do with the insurer’s hefty second-quarter catastrophe losses or the recent downgrade of its financial strength rating by A.M. Best Co.

“The fact is we did not have much penetration in these states,” Anderson says. “We need to focus our efforts on areas where we can have more impact, growth and success. This is not a knock on Rhode Island.”

State Auto says it has told its independent agents of its plans. In a statement the Massachusetts Association of Insurance Agents and the Independent Insurance Agents of Rhode Island say they “recognize that there continues to be consolidation and market entrenchment especially in coastal states. We encouraged and applaud NBIC and State Auto for working together to develop a cooperative solution for the independent agents and their customers.”