Acquisition adds excess and surplus lines capability to The Hartford’s Small Commercial business
The
Hartford has entered into a definitive agreement to purchase
Northern Homelands Company, the holding company of Maxum Specialty
Insurance Group, for $170 million in cash.
“Today’s acquisition supports The Hartford’s strategy to profitably grow
our business by investing in the product, underwriting and distribution
capabilities that are making us a broader and deeper risk player,” said
The Hartford’s President Doug Elliot. “The addition of Maxum, a
well-respected excess and surplus lines company, accelerates our efforts
to build upon our market-leading position in Small Commercial by
expanding our product offerings and capabilities.”
Maxum will maintain its brand and limited wholesale distribution model
and will be managed as a separate unit within The Hartford’s Small
Commercial business. All Maxum employees will be offered continued
employment at close and Maxum will remain headquartered in Alpharetta,
Georgia.
“We are pleased to join an iconic company with a proven ability to adapt
and redefine itself to remain relevant to customers and distribution
partners,” said Maxum CEO Marshall Turner. “We believe that as part of
The Hartford we will have a stronger value proposition and greater
opportunities to expand our products and market position. I would like
to thank our customers and colleagues for the hard work and dedication
that has allowed us to create a quality excess and surplus lines
platform that is poised for continued success.”
The transaction, which will not have a material impact on The Hartford’s
financial results, is expected to close in the third quarter of 2016,
subject to obtaining regulatory approvals and other customary closing
conditions.
More detail about the transaction can be found on The Hartford’s investor
relations website.
About Maxum Specialty Insurance Group
Maxum Specialty Insurance Group was founded in 2003 by a highly
experienced team of insurance industry experts. Maxum Specialty
Insurance Group (Group) is comprised of Maxum Indemnity Company and
Maxum Casualty Insurance Company. Maxum Indemnity is an authorized
non-admitted excess and surplus lines insurer in 49 states; the District
of Columbia; and the territories of Puerto Rico and the U.S. Virgin
Islands. Maxum Casualty is an approved admitted carrier in 50 states and
the District of Columbia. Both companies are domiciled in Delaware.
Maxum writes business through a select group of primarily independent
wholesale brokers and general agents. In the past few years, the Group
has enjoyed significant growth and expansion into new markets. Today,
the Group is rated A-VIII from A.M. Best and its statutory surplus has
grown to more than $114.6 million. For additional information, call
866-387-4500 or visit www.mxmsig.com.
About The Hartford
With more than 200 years of expertise, The Hartford (NYSE: HIG) is a
leader in property and casualty insurance, group benefits and mutual
funds. The company is widely recognized for its service excellence,
sustainability practices, trust and integrity. More information on the
company and its financial performance is available at www.thehartford.com.
Join us on Facebook at www.facebook.com/TheHartford.
Follow us on Twitter at www.twitter.com/TheHartford_PR.
HIG-C
Some of the statements in this release may be considered forward-looking
statements as defined in the Private Securities Litigation Reform Act of
1995. We caution investors that these forward-looking statements are not
guarantees of future performance, and actual results may differ
materially. Investors should consider the important risks and
uncertainties that may cause actual results to differ. These important
risks and uncertainties include those discussed in our 2015 Annual
Report on Form 10-K, subsequent Quarterly Reports on Forms 10-Q, and the
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issued.
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