Everett Cash Mutual Insurance Company Acquires American Reliable’s Farm, Ranch, and Equine Business
08 Agosto 2022 - 10:30PM
Business Wire
Global Indemnity Group, LLC (NYSE:GBLI) ("GBLI"), announced
today that American Reliable Insurance Company (“ARIC”), a GBLI
subsidiary, completed the disposition of ARIC’s Farm, Ranch, and
Equine book of renewal business to Everett Cash Mutual. GBLI also
announced that it agreed to sell ARIC to Everett Cash Mutual (ECM),
which, subject to regulatory approvals and customary transactional
conditions, is expected to close in or before the first quarter of
2023. GBLI and ECM anticipate that the renewal rights and
acquisition transactions will further enhance ARIC’s provision of
products and services to both ARIC’s policyholders and to ARIC’s
agency partners.
ECM’s President and CEO, Randy Shaw, stated that “Everett Cash
Mutual Insurance Co., founded in 1913, is committed to serving the
insurance needs of the agricultural community.” Shaw added that
“ECM’s acquisition of ARIC will shift ECM from a regional carrier
to a national provider with combined gross written premium
approaching $200 million. We look forward to engaging with American
Reliable employees and agents in the coming days.”
David Charlton, GBLI’s Chief Executive, remarked, “GBLI will be
working closely with ECM to assure that the renewal rights and
acquisition transactions will be seamless for ARIC policyholders
and ARIC’s agent partners. In that regard, we encourage ARIC’s
agents to partner with ECM, who is a carrier dedicated to
processing Farm, Ranch, & Equine insurance.” Charlton added
that, “These transactions will also enable GBLI to further sharpen
its focus on the company’s core small and middle market commercial
specialty casualty businesses”.
Transaction Information:
In aggregate GBLI will receive approximately $85 million,
including the release of capital currently supporting ARIC’s
operations (over the course of the next 12 months). GBLI will
receive $30 million for the sale of renewal rights and will receive
an amount equal to surplus when ARIC is sold. Until ECM acquires
American Reliable, ECM will be providing GBLI with 100% quota share
reinsurance in respect of policies subject to the renewal rights
agreement with ECM.
GBLI exited ARIC’s Manufactured Homes and Dwellings business in
the fourth quarter of 2021, which was comparable in size to ARIC’s
Farm, Ranch, & Equine business and generated comparable
proceeds to GBLI upon its disposition.
Fox Paine & Company and Merger & Acquisition Services,
Inc. served as GBLI’s financial advisors in connection with the
Farm, Ranch, & Equine as well as the Manufactured Homes and
Dwellings transactions. Skadden, Arps, Slate, Meagher & Flom
LLP served as GBLI’s legal advisor in regard to both transactions.
Philo Smith Capital Corporation served as ECM’s financial advisor,
and Mette, Evans & Woodside served as legal advisor.
About Global Indemnity Group, LLC and its
subsidiaries
Global Indemnity Group, LLC (NYSE:GBLI), through its several
direct and indirect wholly owned subsidiary insurance companies,
provides both admitted and non-admitted specialty property and
casualty insurance coverages and individual policyholder coverages
in the United States, as well as reinsurance worldwide. Global
Indemnity Group, LLC’s four primary business units are:
- Small to Middle Market Commercial Business
- Commercial Specialty Business
- Programs
- Reinsurance
For more information, visit the Company’s website at
www.gbli.com.
About Everett Cash Mutual
Founded in 1913, Everett Cash Mutual Insurance Co. is a
property/casualty mutual insurer focused on serving the farm and
agri-business sector. ECM provides state of the art products and
technology to support its marketing territory. ECM is rated A
“Excellent” by A.M. Best.
Forward-Looking Information
This press release contains forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934. Forward-looking
statements include all statements that do not relate solely to
historical or current facts, and often can be identified by the use
of words such as “expect,” “intend,” “plan,“ “believe,” “trends,”
and similar expressions of a future or forward-looking nature. The
forward-looking statements contained in this press release[1] do
not address a number of risks and uncertainties. Investors are
cautioned that Global Indemnity’s actual results may be materially
different from the estimates expressed in, or implied, or projected
by, the forward-looking statements. These statements are based on
estimates and information available to us at the time of this press
release and involve a number of risks, uncertainties and
assumptions, including those described in Global Indemnity’s
filings with the Securities and Exchange Commission. Investors are
cautioned that it is not possible for Global Indemnity to predict
all risks, nor can we assess the impact of all factors on our
business or to the extent to which any factor, or combination of
factors, may cause actual results to differ materially from those
contained in any forward-looking statements we may make. In light
of these risks, uncertainties and assumptions, the forward-looking
events and circumstances discussed in this press release may not
occur and actual results could differ materially and adversely from
those anticipated or implied in the forward-looking statements. All
forward-looking statements in this press release are based on
information available to Global Indemnity as of the date hereof.
Please see Global Indemnity’s filings with the Securities and
Exchange Commission for a discussion of risks and uncertainties
which could impact us and for a more detailed explication regarding
forward-looking statements. Global Indemnity does not assume any
obligation to update the forward-looking statements provided to
reflect events that occur or circumstances that exist after the
date on which they were made.
[1] Disseminated pursuant to the "safe harbor" provisions of
Section 21E of the Security Exchange Act of 1934.
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version on businesswire.com: https://www.businesswire.com/news/home/20220808005676/en/
Media – GBLI Stephen W. Ries Head of Investor Relations
(610) 668-3270 sries@gbli.com
Media – Everett Cash Mutual David E. Eppinger, CPCU, ARM
Chief Operating Officer (814) 652-6111 dave@everettcash.com
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