The proposed affiliation is expected to be completed in late 2017
Concord General Mutual has announced that it has entered into a proposed affiliation with the Michigan-based Auto-Owners Insurance Group. The announcement will see two well-regarded mutual insurers, working exclusively through independent agents, join forces.
The proposed affiliation is a win-win proposition for the mutual insurer says Linda Day, Concord’s Chairman & CEO:
The combining of capabilities will allow us to expand our product and premium base and help support the Concord name in the region,” “We are pleased to be affiliating with a strong company that shares our values and commitment to our customers, our independent agency partners, and the people who work at Concord Group.”
If all goes according to plan the deal is expected to close in the second half of 2017, once receipt of the necessary regulatory approvals along with the approval of Concord’s policyholders has been achieved. All of Concord’s current management is expected to remain in place after the closing.
Both companies are mutual insurers working exclusively with independent agents
Founded in 1928, Concord operates through its independent agent partners in four New England states including Massachusetts, Vermont, Maine and New Hampshire.
In response to the proposed affiliation, AM Best has announced that it had placed the Credit Ratings of the Concord Group under review with position implications based upon its proposed affiliation with a larger (“premium and surplus”) and higher-rated insurer.
The Concord Insurance Group Pool, which includes the Concord General Mutual Insurance Company, the Green Mountain Insurance Company, Inc., State Mutual Insurance Company, Sunapee Mutual Fire Insurance Company, and Vermont Accident Insurance Company, Inc. is currently rated A-(Excellent) by A.M. Best.
For Concord, joining forces with Auto-Owners will allow the New England-based mutual insurer to expand its commercial product offerings as well as to grow its workforce. It will also give it the additional resources to strengthen its agency relationships, improve efficiencies while providing greater value to its policyholders. It will also give the regional insurer the resources and support to expand into other product lines.
Auto-Owners, an A-plus-plus-rated company, focused on the independent agent
For Auto-Owners, the proposed affiliation with allow the Michigan-based insurer greater access to the New England marketplace, a region, as illustrated below, in which it currently has no presence.
Established in 1916, Auto-Owners is both a Fortune 500 company and one of the leading property and casualty insurers in the U.S. Comprised of five property and casualty companies in addition to one life/health/annuity insurers, the insurer has combined writings of $6 billion in premium and assets surpassing $22 billion. It currently partners with approximately 43,056 agents in 6,256 agencies through 26 states and is also one of only ten insurers to be rated A++ (Superior) by A.M. Best.
As for the motivation behind Auto-Owners decision to affiliate with The Concord Group, the move actually makes a lot of sense for the Michigan-based insurer. By affiliating with the highly-rated and well-regarded regional insurer, Auto-Owners had found a company whose culture and reputation mirror its own in addition to giving the Michigan-based insurer a strong introduction and foothold into the New England region.
Auto-Owners’ Chairman & CEO Jeff Harrold echoed these sentiments in his official comment on the announced affiliation.
We are excited about combining the efforts of these two groups of companies to expand the geographic reach into New England with additional products and services. Adding Concord and its affiliates to the Auto-Owners family of companies will present tremendous synergies and opportunities for growth on a superior financial platform, providing increased value to agents, customers and our companies. While Auto-Owners and Concord are already leaders in their respective geographic regions, their combined resources will enable them to operate more efficiently and effectively.”