Global Indemnity Group, LLC (NYSE: GBLI) (“GBLI”) announced today that American Reliable Insurance Company (“ARIC”), a GBLI subsidiary, announced the Farm, Ranch and Equine Book of Renewal -took over business from ARIC for Everett. billing completed. Mutual cash. GBLI also announced that it has agreed to sell ARIC to Everett Cash Mutual (ECM), which is expected to close in or before Q1 2023, subject to regulatory approval and customary transaction conditions. GBLI and ECM anticipate that the Extension Rights and Acquisition Transaction will further enhance the delivery of ARIC’s products and services to both ARIC’s policyholders and ARIC’s agency partners.
Randy Shaw, President and CEO of ECM, said, “Established in 1913, Everett Cash Mutual Insurance Company is committed to serving the insurance needs of the agricultural community.” Shaw stated that “ARIC’s acquisition of ECM transformed ECM from a regional carrier to a national providers, with combined gross written premiums approaching $200 million. We look forward to engaging with trusted U.S. employees and agents in the coming days.”
GBLI Chief Executive David Charlton commented: “GBLI will work closely with the ECM to ensure renewal rights and acquisition transactions for ARIC policyholders and ARIC agent partners run smoothly. In this regard, we encourage ARIC representatives to work with ECM, a transportation company specializing in processing farm, ranch and equine insurance.” Charlton said, “These transactions will enable GBLI to turn its attention to the to focus on the company’s core business in the field of commercial emergency preparedness for small and medium-sized markets”.
In total, GBLI will receive approximately US$85 million including the release of capital to support ARIC’s operations (over the next 12 months). GBLI will receive $30 million from the sale of the renewal rights and an amount equal to the excess if ARIC is sold. Until ECM acquires American Trusted, ECM will provide GBLI with 100% quota reinsurance in respect of policies subject to the Extension Rights Agreement with ECM.
GBLI exited ARIC’s prefab and residences business, which was comparable in size to ARIC’s farm, ranch and equine business and had comparable earnings to GBLI in nature, in Q4 2021.
Fox Penn & Company and Merger and Acquisition Services, Inc. Served as financial advisor to GBLI on farm, ranch and horse and manufactured home and condominium transactions. Skadden, Arps, Slate, Meagher & Flom LLP acted as legal counsel to GBLI on both transactions. Philo Smith Capital Corporation served as financial advisor to ECM and Mete, Evans & Woodside as legal advisor.
About Global Indemnity Group, LLC and its subsidiaries
Global Indemnity Group, LLC (NYSE:GBLI), through its many direct and indirect wholly owned subsidiaries, provides licensed and unreported specialty property and casualty insurance and individual policyholder coverage in the United States and worldwide. Cross-reinsurance offers both. , Global Indemnity Group, LLC has four main business units:
For more information, visit the company’s website at www.gbli.com.
About Everett Cash Mutual
Founded in 1913, Everett Cash Mutual Insurance Company is a property and casualty mutual insurance company focused on serving the agricultural and agribusiness industries. ECM offers state-of-the-art products and technology to support its marketing sector. The ECM is rated “Excellent” by AM Best.
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