American Family Buys Permanent General for $239 Million, Citing Direct Sales Experience

American Family Insurance (Madison, Wisc.) has reached an agreement to acquire Nashville-based PGC Holdings Corp. and its subsidiaries, including non-standard auto insurers Permanent General and The General.

The $239 million deal is expected to close later this year, subject to regulatory approval.

"This acquisition expands our holdings to include a company with different capabilities that also operates in some states we don't currently serve," said Jack Salzwedel, American Family chairman and CEO, in a statement. "It also provides American Family an opportunity to learn from a company with successful experience in direct insurance sales."

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PGC Holdings, also known as Permanent General Companies, will remain a separate brand from American Family and operate as a separate entity. Employee positions will be retained, and CEO Randy Parker will continue in his role.

"We are looking forward to the opportunities and potential growth that can be achieved by aligning with a company that is financially strong, service-driven and focused on providing outstanding value to its customers," Parker said in a statement. "We feel strongly that it's the right time and right company for PGC to partner with as we continue to expand our national presence."

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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