The Hartford, the property and casualty insurance firm, has entered into a definitive agreement to purchase Northern Homelands Company, the holding company of Maxum Specialty Insurance Group, for $170 million in cash.
The deal is expected to close in the third quarter of 2016. The Hartford said the transaction will not have a material impact on its financial results.
Maxum will maintain its brand and limited wholesale distribution model and will be managed as a separate unit within The Hartford’s Small Commercial business. All Maxum employees will be offered continued employment at close and Maxum will remain headquartered in Alpharetta, Georgia.
Doug Elliot, president, The Hartford, said: “Today’s acquisition supports The Hartford’s strategy to profitably grow our business by investing in the product, underwriting and distribution capabilities that are making us a broader and deeper risk player.
“The addition of Maxum, a well-respected excess and surplus lines company, accelerates our efforts to build upon our market-leading position in small commercial by expanding our product offerings and capabilities.”
Marshall Turner, chief executive officer, Maxum, added: “We are pleased to join an iconic company with a proven ability to adapt and redefine itself to remain relevant to customers and distribution partners.
“We believe that as part of The Hartford we will have a stronger value proposition and greater opportunities to expand our products and market position. I would like to thank our customers and colleagues for the hard work and dedication that has allowed us to create a quality excess and surplus lines platform that is poised for continued success.”
The Hartford, Northern Homelands Company, Maxum Specialty Insurance, M&A, Doug Elliot, Marshall Turner, North America