National General Holdings has agreed to acquire certain assets of Louisiana based personal lines insurer group Imperial Management Corporation.
National General said it is buying underwriting subsidiaries Imperial Fire & Casualty Insurance and National Automotive Insurance, retail agency subsidiary ABC Insurance Agencies, and 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 recapitalisation of the insurance subsidiaries after closing.
Michael Karfunkel, chairman and chief executive officer (CEO) of National General, said: "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."
National General, North America, Imperial Management Corporation, Michael Karfunkel