BALA CRYWYD, Pa., August 08, 2022–(BUSINESS WIRE)–Global Indemnity Group, LLC (NYSE:GBLI) (“GBLI”), announced today that American Reliable Insurance Company (“ARIC”), a GBLI subsidiary, has completed the restructuring of ARIC’s Farm, Ranch, and Equine portfolio. business for Everett Cash Mutual. GBLI also announced that it has agreed to sell ARIC to Everett Cash Mutual (ECM), which, subject to regulatory approvals and customary conditions, is expected to close in or before the first quarter of 2023. GBLI and ECM expect that the restructuring and acquisition rights will enhance ARIC’s offering of products. and service to ARIC policyholders and ARIC entities.
ECM President and CEO Randy Shaw said, “Everett Cash Mutual Insurance Co., founded in 1913, is dedicated to serving the needs of agriculture.” Shaw added that “ECM’s acquisition of ARIC will transform ECM from a freight forwarder to a global service provider with capital expenditures approaching $200 million. We look forward to engaging with trusted American employees and sponsors in the coming days.”
David Charlton, Chief Executive of GBLI, said, “GBLI will work closely with ECM to ensure that renewal and purchase rights are not limited to ARIC policyholders and ARIC affiliates. which is a dedicated carrier to arrange insurance for Farm, Ranch, & Equine.” Charlton added that, “This action will also enable GBLI to increase its focus on small and medium-sized businesses that have been hit by the market”.
In the merger GBLI will receive approximately $85 million, including the release of funds supporting ARIC’s operations (over the next 12 months). GBLI will receive $30 million from the sale of the restructuring rights and will receive an equal amount from the remainder when ARIC is sold. Until ECM acquires American Reliable, ECM will provide GBLI with 100% quota share reinsurance under the terms of the reinsurance rights agreement with ECM.
GBLI exited ARIC’s Manufactured Homes and Dwellings business in the fourth quarter of 2021, which was similar to ArIC’s Farm, Ranch, & Equine business and generated similar revenue to GBLI as it was.
Fox Paine & Company and Merger & Acquisition Services, Inc. were financial advisors to GBLI related to Farm, Ranch, & Equine and Manufactured Homes and Dwellings activities. Skadden, Arps, Slate, Meagher & Flom LLP acted as legal counsel to GBLI in both matters. Philo Smith Capital Corporation acted as financial advisor to ECM, and Mette, Evans & Woodside acted as legal advisor.
About Global Indemnity Group, LLC and its affiliates
Global Indemnity Group, LLC (NYSE:GBLI), through its multiple direct and indirect insurance companies, provides general and non-general liability insurance and personal injury insurance and coverage to policyholders in the United States, as well as insurance worldwide. the world. . The four primary divisions of Global Indemnity Group, LLC are:
For more information, visit the Company’s website at www.gbli.com.
More about Everett Cash Mutual
Founded in 1913, Everett Cash Mutual Insurance Co. ECM provides the latest tools and technology to support its business sector. ECM was rated A “Excellent” by AM Best.
More to Look Ahead
This article 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 are not historical or current, and generally can be identified by using use words like “expect,” “intend,” “plan,” “believe,” “action,” and similar words for the future or the future. Future words contained in this article don’t deal with multiple risks and uncertainties. Investors are cautioned that the actual results of Global Indemnity may differ materially from those expressed, implied, or implied by forward-looking statements. These statements are based on statistics and information available to us at the time of press release and include a number of risks, uncertainties and assumptions, including those described in Global Indemnity and Securities and Exchange Commission filings. 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 the extent to which any factor, or combination of factors, may cause actual results to differ. which is contained in any optimistic statement we may make. Due to these risks, uncertainties and assumptions, the forward-looking statements and events discussed in this article may not materialize and actual results may differ materially from those anticipated or expressed in the forward-looking statements. All forward-looking statements in this press release are based on information available to Global Indemnity as of that date. Please refer to Global Indemnity’s filings with the Securities and Exchange Commission for a discussion of the risks and uncertainties that may affect us and for more information regarding our expectations. Global Indemnity does not assume any obligation to update statements made to reflect current events or circumstances after the date they are made.
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Media – GBLI
Stephen W. Ries
Director of Investor Relations
Media – Everett Cash Mutual
David E. Eppinger, CPCU, ARM
Chief Operating Officer