American Independent Bought For $45 Million

NU Online News Service, Dec. 16, 11:49 p.m. EST?American Independent Insurance Holding Company and Personal Service Insurance Co. announced yesterday that it has been purchased by a private investor group, Wand Partners and Inverness Management, for $45 million.[@@]

Although the firms are being sold off by Arch Capital Group Ltd. and its subsidiary, Arch Capital Holdings Ltd., which bought them four years ago, the companies said their links with Arch will continue through a reinsurance agreement.

Bill Lockhorn, president and chief executive officer of American Independent will be a part of the new ownership group,

Based in Conshohocken, Pa. American Independent is a specialty provider of auto insurance, principally in Pennsylvania, Delaware, and Ohio. American Independent and Personal Service have combined premium volume of more than $100 million, have about 160 employees and distribute products through a network of approximately 550 independent agents.

Wand Partners Inc. and Inverness Management LLC are two closely associated private equity firms based in New York City with experience in insurance investments.

Mr. Lockhorn said the management of the insurance firms was "delighted to have the opportunity to become owner/managers with the support of experienced insurance investors."

He said the purchase will give the firms the capital "to expand our non-standard auto business with our business partners, the Independent Insurance Agents, in our current states and to other states. We are also pleased that our relationship with Arch will continue through an important, multi-year reinsurance agreement that will contribute additional support to our growth plan."

Bruce Schnitzer, chairman of Wand Partners, said: "American Independent will operate independently under the leadership of Bill Lockhorn and his current management team and will continue to focus its activities on providing automobile insurance, through the Independent Agency system, to individuals who might otherwise have difficulty finding high-quality insurance at a fair price."

James C. Comis, III, a managing partner of Inverness, said American Independent "is a very efficient operator in its market niche, and we look forward to helping the company implement its growth strategy, both organically and through carefully selected acquisitions."

Inverness said it manages private equity funds with more than $350 million of committed capital, provided primarily by large institutional investors.

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American Independent Bought For $45 Million

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