The Hartford has entered into a renewal rights agreement with the Farmers Exchanges to acquire its Foremost Insurance commercial independent agent business, gaining access to nearly $200 million in commercial lines premium.
Stephanie Bush, The Hartford’s head of Small Commercial and Personal Lines, said; “this renewal rights agreement further strengthens The Hartford’s market-leading position in small business, and also provides an opportunity to deepen and broaden our distribution network.”
The Foremost-branded small commercial independent agent book of business, sold through over 5,000 agents and brokers nationwide, boasts $200 million in annual premium as of December 31, 2017.
It consists of three primary lines of business underwritten by Foremost Insurance Group; business owner’s policy for property, general liability and umbrella; commercial auto; and workers’ compensation.
Sharon Fernandez, head of Business Insurance for Farmers Insurance, said; “this move provides us the flexibility to increase our focus and invest additional resources on the small business segment, which we remain very committed to, through our vast network of Farmers agents.”
The Hartford said the agreement won’t have a material impact on its financial results, further details of the transaction terms were not disclosed.