Sentry Insurance coverage has unveiled its plan to accumulate The Common from American Household Insurance coverage by paying almost $1.1bn in money.
The full transaction worth, with the addition of the worth of assumed liabilities and required capital, will quantity to $1.7bn.
This acquisition is about to develop Sentry’s attain within the non-standard auto insurance coverage market.
Sentry, a mutual insurance coverage firm, is understood for its enterprise insurance coverage experience.
By way of its Dairyland model, the corporate additionally provides protection for non-standard auto, bike and off-road autos.
Non-standard auto insurance coverage caters to drivers who’ve difficulties acquiring commonplace auto protection.
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Sentry highlighted that each The Common and Dairyland have been serving non-standard auto insurance coverage prospects for greater than six many years.
The Common, based mostly in Nashville and purchased by American Household in 2012, has been available in the market since 1963.
In the meantime, Dairyland, established in 1953 and purchased by Sentry in 1966, is predicated in Middleton, Wisconsin.
Sentry emphasised that the acquisition is a strategic match, as The Common is understood for direct-to-consumer, non-standard auto insurance coverage, whereas Dairyland is recognised for serving prospects via its impartial agent community.
Each manufacturers will proceed to function independently as Sentry and The Common work via the mixing course of.
Round 1,300 staff from The Common will transfer to Sentry on 1 January 2025, strengthening the latter’s present headcount of 5,000, and can stay based mostly in Nashville.
Sentry chairman and CEO Pete McPartland stated: “This acquisition is the biggest in our 120-year historical past. It brings collectively two of the strongest manufacturers within the non-standard auto business. Collectively, Dairyland and The Common shall be higher in a position to meet the specialised wants of much more drivers throughout the nation. It’s an thrilling step ahead for each firms, and I’m happy with the work our workforce has executed to make this doable.”
American Household Insurance coverage chair and CEO Invoice Westrate stated: “As a part of our enterprise, The Common has grown its income greater than fivefold, pushed persistently worthwhile enterprise, entered into new states whereas remaining devoted and passionate concerning the prospects and the promote it serves.
“We’re assured that Sentry’s experience, robust status on this market and employment tradition is not going to solely proceed to serve The Common’s prospects effectively however can even ease the transition for The Common’s staff.”
Final month, Sentry partnered with Aegis Skilled Danger, a division of Aegis Common and K2 Insurance coverage Companies, to supply a brand new errors and omissions programme.
