The affiliation between Union Mutual Fire Insurance Co. and a group of Massachusetts-based mutual insurers, operating collectively as N&D, has been approved by Vermont Insurance Commissioner Kevin Gaffney.
According to the commissioner's order, this is a mutual affiliation, not an acquisition, meaning there is no purchase price or financial exchange involved. Mutual companies can only be acquired after demutualizing, which is not the case in this arrangement.
“For us, it is really about growth and continuing to [look] for ways to be more profitable so we can provide greater assurances for our policyholders and provide growth opportunities for our agents,” said Union Mutual vice president and general counsel Sarah Jarvis (pictured above).
She also noted that the partnership with the larger company would offer Union Mutual employees exposure to more industry opportunities without resulting in layoffs or pay cuts.
The affiliation agreement includes Union Mutual and its subsidiary, New England Guaranty Insurance Co. Inc., along with Massachusetts’ Norfolk & Dedham Mutual Fire Insurance Co., Dorchester Mutual Insurance Co., and Fitchburg Mutual Insurance Co.
Under the agreement, N&D, Union, and their subsidiaries will share a common board, though each company will continue to market products under their existing brands in their respective markets.
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The affiliation was initially proposed in April. At that time, it was projected that the combined group would write personal and commercial business in eight states, generating approximately $596 million in direct written premium and more than $580 million in policyholder surplus, according to a joint statement from N&D and Union.
Union Mutual President and CEO Lisa Keysar will remain in her role, while Joel Murray, president and CEO of N&D, will also serve as board chair of the newly affiliated group.
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