(Jan. 2, 2013) – American Family Insurance completed its previously announced acquisition of the Nashville, Tenn.-based Permanent General Companies and other subsidiaries of the PGC Holdings Corp. on Dec. 31.
The $239 million transaction with previous majority owner Capital Z Partners required approval of the Ohio Department of Insurance, as the three insurance companies owned by PGC Holdings are domiciled in that state. The department approved the acquisition Dec. 21.
“Permanent General is a strong, successful company in a fast-growing, profitable market segment,” said Jack Salzwedel, American Family’s chairman and chief executive officer. “As far as we’re concerned, it’s ‘business as usual’ at the Nashville headquarters and the other PGC locations, as they operate with a high degree of autonomy.”
Based in Madison, Wis., American Family is one of the country’s largest property-casualty mutual insurance companies, with annual direct written premium of $5.4 billion. The multi-line company sells auto, home, business, farm/ranch and life insurance in 19 states through its network of 3,500 agents, who sell American Family products only. A small percentage of policies are sold through the company’s website, www.amfam.com, and sales call centers.
Permanent General, www.pgac.com, specializes in serving the non-standard auto insurance market through its subsidiaries, Permanent General and The General®, www.thegeneral.com. The company sells its products in 25 states through the Internet, call centers, and in some states independent agents who specialize in non-standard coverage, and partner retail store alliances. Permanent General reported direct written premium of $270 million at the end of 2011.
Permanent General will continue to operate as a separate entity and will remain a completely separate brand – using its widely-known The General® brand. Employee positions will be retained, and Randy Parker will continue in his role as Permanent General’s chief executive officer.
“It is an exciting time for Permanent General. Joining a strong and respected company is an honor for all of our associates,” said Parker. “As we begin to work alongside American Family, we are looking forward to taking Permanent General and The General to the next level."
Salzwedel said the acquisition provides short-term and long-term benefits. “Permanent General reaches a different consumer segment than American Family, so in that sense we’re diversifying vertically. They also operate in states American Family doesn’t currently serve, and they have extensive experience in direct distribution, so those aspects bring additional diversification.”
American Family agents will remain the exclusive agent sellers of American Family products. Independent agents who sell The General products will not sell American Family products.
Willis Capital Markets & Advisory acted as exclusive financial advisor to Permanent General Companies. Goldman, Sachs and Co. acted as exclusive financial advisor to American Family.
More on American Family:
American Family was founded in Madison in 1927, and operates in 19 states: Arizona, Colorado, Georgia, Idaho, Illinois, Indiana, Iowa, Kansas, Minnesota, Missouri, Nebraska, Nevada, North Dakota, Ohio, Oregon, South Dakota, Utah, Washington and Wisconsin.
American Family has the largest share of the property and casualty market in its home state, Wisconsin, and is among the top five writers in a number of other states.
At the end of 2011, American Family had $17.3 billion in assets, $5.7 billion in policyholder equity and $6.2 billion in annual revenue.
American Family employs 7,200 people, with about half of those in Madison. The company also has regional and other large offices in Denver; Eden Prairie, Minn.; Milwaukee; Phoenix; St. Louis; and St. Joseph, Mo.
More on Permanent General:
Permanent General, founded in 1963, actively conducts business in 25 states: Alabama, Arizona, California, Colorado, Connecticut, Florida, Georgia, Illinois, Indiana, Kentucky, Louisiana, Mississippi, Missouri, New York, Nevada, Ohio, Oklahoma, Oregon, Pennsylvania, South Carolina, Tennessee, Texas, Virginia, Washington and Wisconsin. The company plans to expand into Utah and West Virginia this year.
At the end of 2011, Permanent General reported $397 million in assets, $135 million in statutory surplus and $350 million in annual revenue.
The company employs approximately 750 people, with 400 at its Nashville headquarters and call center, and 350 at other locations, including call centers in Cleveland and Phoenix, and claims office in Tampa, Fla.
More on Capital Z Partners:
Capital Z Partners is a leading private equity firm focused exclusively on the financial services industry. Since 1990, Capital Z has invested over $2 billion across the insurance, specialty finance, banking, and services sectors. For further information, see www.capitalz.com.