NEW YORK, June 27, 2014 (GLOBE NEWSWIRE) -- National General Holdings Corp. (Nasdaq:NGHC) (the "Company") today announced that it has agreed to acquire certain assets of Imperial Management Corporation ("Imperial"), including its underwriting subsidiaries Imperial Fire & Casualty Insurance Company and National Automotive Insurance Company, its retail agency subsidiary ABC Insurance Agencies, and its managing general agency subsidiary RAC Insurance Partners.
The total purchase price for the transaction will approximate GAAP book value of the combined operations, inclusive of: $20 million cash consideration for the operating companies, a distribution to the seller of certain Imperial invested assets, and a recapitalization of the insurance subsidiaries after closing. The transaction has closed effective immediately.
Michael Karfunkel, Chairman and Chief Executive Officer of National General stated: "We are excited about the addition of the Imperial team and companies to our profitable and growing personal lines business. We believe Imperial is a natural fit with our recent homeowners expansion efforts, adding increased diversification to our product portfolio and enhancing our geographic footprint, and we expect the transaction to be immediately accretive to earnings. I want to thank and welcome the existing employees and management team, led by Imperial CEO H. Marcus Carter, Jr., whom we are looking forward to working side by side with in the integration of this transaction."
Headquartered in Opelousas, Louisiana, Imperial Management Corporation provides personal auto, commercial auto, homeowners, and Federal Flood policies through its four operating subsidiaries: Imperial Fire & Casualty Insurance Company, National Automotive Insurance Company, ABC Insurance Agencies, and RAC Insurance Partners. In 2013, Imperial produced approximately $150 million of gross written premium through underwriting subsidiaries and approximately $45 million of managed premium written by ABC insurance agencies (of which, approximately $7 million was written on Imperial Fire & Casualty Insurance Company and National Automotive Insurance Company paper). Details of Imperial's operating subsidiaries include:
- Imperial Fire & Casualty Insurance Company – Underwrites personal auto policies in AR, FL, LA, OK and TX; homeowners policies in LA and TX; and is licensed to write Federal Flood policies in AL, AZ, AR, FL, GA, IN, KS, KY, LA, MS, MO, NE, NV, NM, NC, OK, SC, TN, TX, and WV.
- National Automotive Insurance Company – Acquired in December 2013 and provides non-standard personal auto insurance direct to consumers through independent agents across LA, with a heavy policyholder concentration in New Orleans.
- ABC Insurance Agencies – Acquired in 2001, ABC is an independent agent that sells auto and homeowner insurance products through 32 retail locations in LA and TX.
- RAC Insurance Partners – Acquired in 2009, RAC is a Managing General Agency that produces specialty auto programs and non-standard auto business, operating in Florida with a concentration in the Miami-Dade County market.
About National General Holdings Corp.
National General Holdings Corp., headquartered in New York City, is a specialty personal lines insurance holding company. Through its subsidiaries, which trace their roots to 1939 and have a financial strength rating of A- (excellent) from A.M. Best, the Company provides personal and commercial automobile, recreational vehicle, motorcycle, homeowners, supplemental health, and other niche insurance products.
Forward Looking Statements
This news release contains "forward-looking statements" that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The forward-looking statements are based on the Company's current expectations and beliefs concerning future developments and their potential effects on the Company. There can be no assurance that actual developments will be those anticipated by the Company. Actual results may differ materially from those expressed or implied in these statements as a result of significant risks and uncertainties, including, but not limited to, non-receipt of expected payments from insureds or reinsurers, changes in interest rates, a downgrade in the financial strength ratings of our insurance subsidiaries, the effect of the performance of financial markets on our investment portfolio, estimates of the fair value of life settlement contracts, development of claims and the effect on loss reserves, accuracy in projecting loss reserves, the cost and availability of reinsurance coverage, the effects of emerging claim and coverage issues, changes in the demand for our products, our degree of success in integrating acquired businesses, the effect of general economic conditions, state and federal legislation, regulations and regulatory investigations into industry practices, risks associated with conducting business outside the United States, developments relating to existing agreements, disruptions to our business relationships, breaches in data security or other disruptions involving our technology, heightened competition, changes in pricing environments, and changes in asset valuations. The forward-looking statements contained in this news release are made only as of the date of this release. The Company undertakes no obligation to publicly update any forward-looking statements except as may be required by law. Additional information about these risks and uncertainties, as well as others that may cause actual results to differ materially from those projected, is contained in the Company's filings with the Securities and Exchange Commission.
CONTACT: Investor Contact Dean Evans Director of Investor Relations Phone: 212-380-9462 Email: Dean.Evans@NGIC.com
Source:National General Holdings Corp.