BALA COP, Pa.–(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 book. 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 services for ARIC policyholders and ARIC entities.
ECM President and CEO, Randy Shaw, said “Everett Cash Mutual Insurance Co., founded in 1913, is dedicated to helping farmers with insurance. Shaw added that “ECM’s acquisition of ARIC will transform ECM from a cargo area to a global one with total written capital approaching $200 million. We look forward to partnering 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 procurement rights are not burdensome to ARIC policyholders and ARIC subsidiaries. For this reason, we encourage ARIC agents to partner with ECM, a dedicated carrier for Farm, Ranch, & Equine insurance. Charlton added, “These actions will also enable GBLI to continue to expand its focus on the small and medium-sized businesses of the companies that have been hit hard”.
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 subsidiaries
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:
Small to Middle Market Commercial Business
Special Trade Business
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 equipment and technology to support its business sector. ECM rated A “Good” and AM Best.
More to Look Ahead
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