LWCC, Louisiana’s largest workers’ compensation insurance carrier, announced it has acquired 100% ownership of Prescient National, a North Carolina-based workers’ compensation insurer.
As part of the transaction, Prescient National, rated “A” by AM Best, will operate as a subsidiary of LWCC.
Kristin W. Wall (pictured above), president and CEO of LWCC, said that Prescient National’s performance aligns with LWCC’s conservative investment strategy.
“Prescient National has a demonstrated track record of outstanding performance that positions it as an attractive complement to LWCC’s conservative investment strategy,” Wall said. “We believe the acquisition will benefit our current and future policyholders.”
The acquisition merges two workers’ compensation insurers with strong financial performance and a shared focus on stakeholder commitments. LWCC noted that the deal would diversify its investment portfolio while creating opportunities for both companies to leverage each other’s strengths.
Bruce Flachs, CEO of Prescient National, highlighted the compatibility between the two organizations.
“The entrepreneurial, forward-looking approach our team has taken to build this company will be enhanced with LWCC’s support,” Flachs said.
Despite the acquisition, Prescient National will continue to operate independently from its headquarters in Charlotte, North Carolina.
Keefe, Bruyette & Woods, A Stifel Company, served as exclusive financial advisor to LWCC, with Sidley Austin LLP providing legal counsel. Howden Capital Markets & Advisory acted as exclusive financial advisor to Prescient National, while Robinson Bradshaw served as legal counsel.
Elsewhere in the state, Louisiana Insurance Commissioner Tim Temple has identified key reforms needed to stabilize the state's challenging auto and home insurance markets, with a focus on reducing excessive litigation and strengthening building codes.
A report from October shows Louisiana residents are 2.3 times more likely to enter into litigation, and twice as likely to file a bodily injury claim, which directly impacts insurance premiums across the state.
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