Assurant Specialty Property, a business segment of Assurant, has sold its general agency business and associated insurance carrier, American Reliable Insurance Company, to Global Indemnity Group Inc., a subsidiary of Global Indemnity plc, for approximately $114 million in cash.
Based in Scottsdale, Ariz., American Reliable Insurance offers specialty personal lines and agricultural insurance through general and independent agents. The business said it recorded approximately $250 million of GAAP net earned premiums in 2013.
The sale represents a change in strategy for the parent company. "Assurant Specialty Property is focused on accelerating our momentum within the mortgage and multifamily housing industries," Gene Mergelmeyer, president and CEO of Assurant Specialty Property, said in a press release. "The sale of American Reliable Insurance Company allows us to better align our portfolio of businesses, increase resources allocated toward these markets and strengthen our core business."
The deal with Global Indemnity, a specialty insurance and reinsurance provider based in Ireland that owns several other US insurance companies, is expected to close following regulatory approval and satisfaction of customary closing conditions.
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Nathan Golia is senior editor of Insurance & Technology. He joined the publication in 2010 as associate editor and covers all aspects of the nexus between insurance and information technology, including mobility, distribution, core systems, customer interaction, and risk ... View Full Bio