Auto-Owners Insurance has entered into a definitive agreement to acquire Monterey, Calif.-based Capital Insurance Group.
Terms of the deal were not disclosed. Auto-Owners Insurance Group, headquartered in Lansing, Mich., is a multiline property/casualty insurer operating through independent agencies in 26 states. Auto-Owners also owns a life insurance company, an excess and surplus lines company, and is affiliated with Concord General Mutual Insurance Company in the northeastern U.S.
Capital Insurance Group insures personal lines and a wide range of commercial and agricultural businesses in California, Washington, Oregon, Nevada and Arizona.
Philo Smith & Co. was the exclusive financial advisor to Auto-Owners.
Following the announcement by Auto-Owners, A.M. Best announced that it was revising the implications of the “under review” status of A- (excellent) financial strength rating of California Capital Insurance Company and its subsidiaries: Eagle West Insurance Company, Monterey Insurance Company and Nevada Capital Insurance Company, collectively referred to as Capital Insurance Group under an intercompany pooling arrangement. “The developing implications are due primarily to the potential of positive rating factors that may result post-acquisition,” the A.M. Best announcement said.
Auto-Owners is currently rated A++ (superior) by A.M. Best.
Auto-Owners also ranked No. 1 among personal lines carriers in J.D. Power 2019 U.S. Independent Insurance Agent Satisfaction Study published earlier this year, and ranked second in a customer survey of small business insurers by J.D. Power last year.
Source: Auto-Owners Insurance