The Hartford has entered into a definitive agreement to buy Northern Homelands Company, the holding company of excess and surplus lines insurer Maxum Specialty Insurance Group, for $170 million in cash.
In a statement about the deal announced on Wednesday, The Hartford’s President Doug Elliot said the acquisition dovetails with The Hartford’s strategy to grow profitably through investments in product, underwriting and distribution capabilities will make the carrier “a broader and deeper risk player.”
Specifically, Elliot said the deal accelerates The Hartford’s efforts to build upon its market-leading position in small commercial by expanding product offerings and capabilities.
Maxum CEO Marshall Turner similarly suggested that being a part of The Hartford means both a stronger value proposition for Maxum and greater opportunities to expand products and market position. “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,” Turner said.
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, Ga.
Maxum Specialty Insurance Group, which was founded in 2003 by an experienced team, is comprised of Maxum Indemnity Company and Maxum Casualty Insurance Company. Maxum Indemnity is an authorized non-admitted E&S 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.
The Hartford said the deal will not have a material impact on The Hartford’s financial results. It is expected to close in the third quarter of 2016, subject to obtaining regulatory approvals and other customary closing conditions.
Last month at an investor conference, The Hartford Chief Executive Officer Christopher Swift said that mergers and acquisitions are one of many possible paths for the company to take to fuel growth going forward.
Source: The Hartford