National General Holdings Corp. has completed its previously announced acquisition of National Farmers Union Property and Casualty Company (National Farmers Union Insurance) from QBE North America.
The purchase price for this deal was $52.8 million subject to customary post-closing adjustments. The firm explains that the change in the closing purchase price from its preliminary estimate reflects balance sheet changes during the past three quarters from ordinary course business activity.
National Farmers Union Insurance is a property and casualty (P&C) insurer that predominantly underwrites personal and farm auto and farm and homeowners’ insurance in the Midwestern U.S. The firm has an exclusive relationship with the National Farmers Union until 2050, which provides it with access to members through approximately 400 agencies.
Barry Karfunkel, Chief Executive Officer (CEO) of National General, commented: “We are excited to continue to expand our personal lines portfolio through the acquisition of National Farmers Union Insurance. This acquisition fits well with our existing business mix, expanding our personal lines footprint in the Midwest and opening up a new distribution network through an exclusive partnership with the National Farmers Union.
“We expect to realize benefits from integrating the company onto our shared services platform and the geographic diversification the acquisition brings, and we expect the acquisition to be immediately accretive to earnings.
“We welcome the National Farmers Union Insurance team to National General and look forward to continuing the profitable growth of our combined organization.”