Global Indemnity’s US affiliate is to purchase American Reliable Insurance Company from Assurant, Inc. (NYSE: AIZ) in a transaction with an enterprise value of approximately USD394,000,000.
Global Indemnity's US division will pay approximately USD114,000,000 in cash to Assurant at closing (which could be increased to approximately USD120 million to account for net earnings between 30 June, 2014 and the closing) and assume approximately USD280,000,000 in customary insurance related liabilities, obligations, and mandates. American Reliable, with facilities in Scottsdale, Arizona, and Omaha, Nebraska, writes specialty personal lines and agricultural property and casualty insurance, in each case distributed through a network of general and independent agents.
Cindy Valko, Global Indemnity's Chief Executive remarked: "Strategically, American Reliable enhances Global's position in the US as a specialty personal, agricultural (equine, farm & ranch), and commercial property and casualty insurance provider. The combination of American Reliable with Global's Penn-America, United National, and Diamond State operations will provide Global's and American Reliable's employees and wholesale and MGA partners with complementary products, infrastructure, and underwriting expertise.
"We anticipate a seamless transition and will closely coordinate transaction execution with Assurant.