NU Online News Service, April 4, 10:34 a.m.EDT

The Main Street America Group, and Austin Mutual Insurance Co.,a Minnesota-domiciled regional property and casualty carrier, havereached an agreement to establish Austin Mutual as an affiliate ofMain Street America.

Main Street America, a major regional property and casualtymutual insurance holding company based in Jacksonville, Fla., saysthe affiliation agreement, approved by the boards of bothcompanies, is subject to regulatory approval from the State ofMinnesota Insurance Commissioner's Office as well as policyholdersof Austin Mutual.

The closing is projected to occur by midyear 2012.

Terms of the transaction were not disclosed.

Austin Mutual, founded in 1896, will maintain its brand name andcontinue to sell its products via its network of independent agentsin nine Midwest and Western states, Main Street America says.

The company went on to say that under terms of the affiliation,Austin Mutual chairman, president and chief executive officerJeffrey Kusch will continue to oversee the company's dailyoperations out of its Maple Grove, Minn., headquarters and reportto Tom Van Berkel, chairman, president and chief executive officerof Main Street America. There will also be a management andservices agreement in place between the two companies and MainStreet America will provide Austin Mutual with quota sharereinsurance.

“The Main Street America Group's long-term strategy to sustainprofitable growth is focused on spreading risk and increasing scalethrough geographic diversification and we will take another step inthis direction by establishing an affiliation with Austin Mutual,”says Van Berkel in a statement.

Over the past four years, Main Street America says it hasestablished a Midwest presence through an acquisition ofMichigan-domiciled Great Lakes Casualty Insurance Co. in 2008, andtwo other affiliations: Indiana-domiciled Grain Dealers MutualInsurance Company in 2009 and Minnesota-domiciled Spring ValleyMutual Insurance Company in 2011.