Hagerty Insurance Holdings, Inc. (Holdings), a subsidiary of Hagerty, has agreed to acquire Everspan’s Colorado-domiciled insurance company, Consolidated National Insurance Company (CNIC).
Holdings entered into a stock purchase agreement with Everspan and has agreed to pay approximately $18.4 million to acquire all of the issued and outstanding capital stock of CNIC.
The closing price is comprised of approximately $10 million for the approved state licences and $8 million for the expected capital and surplus.
This acquisition would make CNIC Hagerty’s new carrier platform which will allow the company to continue to drive high rates of written premium growth and retention of underwriting profits, according to the announcement.
The transaction, subject to regulatory approval, is expected to close during the second quarter of 2024, subject to the satisfactory completion of closing conditions.
Following Hagerty’s announcement of CNIC’s acquisition, credit rating agency AM Best stated that the ratings of Hagerty Reinsurance Limited (Hagerty Re) remain unchanged.
The rating agency said: “The acquisition is not expected to have any material impact on Hagerty Re’s balance sheet strength or any near-term material impact on the ultimate parent, Hagerty, Inc.
“AM Best will continue to monitor the transaction through closing and potentially take rating action should any factor associated with the deal change materially.”
