Nationwide Buys Non-Standard Auto Biz
NU Online News Service, Aug. 1, 4:01 p.m., EDT?Columbus, Ohio-based Nationwide Mutual Insurance Co. has completed a $141 million agreement to purchase THI Holdings Inc. of Cleveland.
THI was the domestic, non-standard auto business for Prudential Financial Inc., marketed under the Titan Insurance Co. and Victoria Insurance Group brand names.
Prudential said the sale was completed for a cash consideration of $138 million and a dividend distribution of $3.8 million, for a total consideration of $141.8 million. This represents a pre-tax loss of about $30 million in comparison to book value, the company said.
"For more than a year we've looked to expand our non-standard auto business through purchase or internal investment," said Galen Barnes, president and chief operating officer of Nationwide, in a statement. "We are pleased with the opportunity to acquire a company with two established consumer brands, Titan and Victoria, and a solid infrastructure. THI will provide an outstanding platform to grow our non-standard business."
Mr. Barnes also announced the selection of John C. Burkhalter as president of THI. Mr. Burkhalter will be responsible for THI's overall direction, strategy and operating results, Nationwide said.
THI had $265 million in net premiums written in 2002. It operates in 21 states via 7,500 independent agents and through direct sales, according to Nationwide.
THI is rated "A minus" (Excellent) by A.M. Best.
Prudential said its sale of its national auto and homeowner personal lines business to Liberty Mutual and its New Jersey business to Palisades remains on track for closing in the fourth quarter.
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