American Family Insurance Mutual Holding Company (American Family) announced a planned merger with Main Street America Group Mutual Holdings, Inc. (Main Street America) in May 2018. The merger already has been approved by state insurance regulators in Wisconsin, Florida, Indiana, Minnesota and South Carolina, according to company reports, and remains subject to American Family and Main Street America member approval.
American Family and Main Street America are now in the process of seeking member approval of the merger. American Family started sending an informational packet and proxy statement to members on August 31, 2018, with votes requested by October 19, 2018. American Family will hold a special member meeting on October 24, 2018 at the company’s national headquarters.
Coverage and customer service under existing American Family and Main Street America policies would not be affected by the merger. The two companies will reportedly continue to operate separately, and Main Street America will retain its separate branding. The merger is expected to become final by the end of 2018.
About American Family Insurance
American Family Insurance, based in Madison, Wis., offers insurance 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).
It is the nation’s third-largest mutual property/casualty insurance company and the 13th-largest property/casualty insurance group. American Family contracts with 2,800 independent contractor agents and employs about 8,100 people. Revenue exceeded $9 billion in 2017.
Personal lines of coverage include: auto, home, life, business, farm and ranch, renters, snowmobile, umbrella, motorcycle, condo, manufactured home, boat, flood, travel, ATV, RV, and health.
American Family’s business coverage includes primary and auxiliary building coverage, business personal property, business auto, rental property damage, contractor’s insurance, business liability, bodily injury, property damage and/or personal and advertising injury expenses that arise from business operations.
Business employee coverage includes business liability protection, medical expense coverage, commercial liability umbrella policy, employment practices liability (EPL), and workers’ compensation liability.
Additional business endorsements include spoilage coverage, back up and overflow, employee dishonesty, and flood insurance.
About Main Street America Group
The Main Street America Group, based in Jacksonville, Fla., is a property-casualty mutual holding company that offers personal insurance, commercial auto, commercial umbrella, workers’ compensation, surety bonds, and flood insurance for individuals, families and businesses. The firm writes insurance in 36 states and surety bonds in 45 states and the District of Columbia. Annual premiums are in excess of $1 billion.
Main Street America operates eight property and casualty insurance carriers:
- Austin Mutual Insurance Company
- Grain Dealers Mutual Insurance Company
- Great Lakes Casualty Insurance Company
- Main Street America Assurance Company
- Main Street America Protection Insurance Company
- MSA Insurance Company
- NGM Insurance Company
- Old Dominion Insurance Company
- Spring Valley Mutual Insurance Company
Main Street America partners with more than 3,000 independent agents to support more than 650,000 policyholders.
What Does the Merger Mean for Panel Counsel Members?
At the moment it appears that the American Family panel counsel program and the Main Street America panel counsel group will each remain intact and separate. Insurance defense law firms that are on either panel will want to stay close to their contacts at American Family and / or Main Street America to monitor news on the merger and any consolidation plans.
A natural goal in any merger is “synergy,” meaning the ability to integrate similar support functions. Panel counsel members will want to be alert to any longer-term effort to review panel composition and perhaps streamline law firm participation.
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