May 24, 2016
Western National Set to Purchase Nevada-Based Company
(Minneapolis, Minn.) Western National Insurance Group of Edina, Minn. today announced the signing of a definitive agreement for the purchase of 100 percent of the stock of Las Vegas, Nev.-based Nevada General Insurance Company, AIC America, and its wholly owned affiliates Auto Insurance America (New Mexico) and Auto Insurance America (Arizona) from Mutual of Enumclaw Insurance Company. The purchase is subject to the completion of due diligence and the approval of regulatory authorities. A final closing is expected no later than July 2016.
Nevada General and its affiliates will continue to operate locally in Las Vegas, reporting to Western National’s existing non-standard auto insurance company, Arizona Auto Insurance Company, based in Phoenix, Ariz. The newly added companies will continue to write non-standard auto insurance in Nevada and New Mexico, under the ultimate management and control of Western National and with its full financial support.
“We are looking forward to working with Nevada General’s fine staff as we continue to expand our non-standard auto presence in the Southwest,” said Stuart Henderson, president and chief executive officer of WNIG. “This acquisition will give us a head start on an already planned launch of non-standard auto into Nevada. The economies of scale, product enhancements, and improved capitalization that Western National Insurance Group brings to Nevada General will serve to increase profit and enhance stability for our policyholders.”
Nevada General Insurance Company currently writes over $13 million of non-standard auto premium in the states of Arizona, Nevada, and New Mexico, both directly to consumers and through professional independent agents.
Mutual of Enumclaw Insurance Company, an Oregon corporation founded in 1898 and based in Enumclaw, Wash., writes over $390 million of personal, commercial, and farm premium in Washington, Oregon, Idaho, Utah, and Arizona through professional independent agents.
Western National Insurance Group, headquartered in Edina, Minn., is a super-regional property-and-casualty insurance group writing over $520 million in Direct Premium in 19 states, plus Surety in an additional 7 states. The group consists of seven active companies (Western National Mutual Insurance Company, Western National Assurance Company, Pioneer Specialty Insurance Company, Western Home Insurance Company, Arizona Auto Insurance Company, Umialik Insurance Company, and American Freedom Insurance Company) serving personal and commercial customers in the Midwestern, Northwestern, and Southwestern U.S, and Alaska. All of the group’s products are sold exclusively through professional independent agents.
Philo Smith & Company acted as sole financial advisor to Mutual of Enumclaw on the transaction.
For further information, please contact:
Steve Norman, CPCU, M.A., AIT
Assistant Vice President – Communications
(952) 921-5680 or (800) 862-6070 Ext. 7680