The Main Street America Group said it has reached an agreement to acquire Grand Rapids, Mich.-based Great Lakes Casualty Insurance Company, a private passenger auto insurance carrier.

Specific amounts involved in the combination stock and cash purchase from Newco Financial Holdings Inc., an insurance holding company based in Grand Rapids, were not released.

The transaction is subject to regulatory and shareholder approval and is expected to close in late summer 2008.

Great Lakes Casualty, founded by a group of independent agents in 1997, is currently represented by 107 independent agents throughout Michigan that are also investors in the company.

In 2007, Great Lakes generated approximately $9.5 million in direct written premium and has more than 6,300 policyholders throughout the state, Main Street America said. The company numbers 12 employees.

Great Lakes president Keith Fry will join Main Street America to oversee the company's operations in Michigan and will report to Doug Eden, Main Street America's senior vice president of field operations. The company will remain branded as Great Lakes Casualty and continue to be based in Grand Rapids.

"Our acquisition of Great Lakes Casualty is part of our long-term strategy of geographic diversification to increase scale and marks our entry into the Midwest to complement our 85 years of successfully serving our 'Main Street' independent agent-customers and their customers (policyholders) throughout the Eastern seaboard," said Tom Van Berkel, chairman, president and chief executive officer of Jacksonville, Fla.-based Main Street America.

"We will be entering a market in Michigan that has excellent growth potential for us," he said.

"Our affiliation with Main Street America is great news for our independent agent-investors and our policyholders, as well as our local and state economy, as we will be joining a financially strong organization that is 100 percent committed to the independent agency system and has one of the best reputations in the property-casualty industry," Mr. Fry said. "This will enable us to increase our product offerings to Michigan consumers and provide more sales opportunities for our agents."

Founded in 1923, The Main Street America Group is a super-regional insurance company that operates four property-casualty insurance carriers: NGM Insurance Company, Old Dominion Insurance Company, Main Street America Assurance Company and MSA Insurance Company.

With more than $850 million in direct premium written by nearly 1,200 independent insurance agents, the company offers a range of commercial and personal insurance products, and fidelity and surety bond products to individuals, families and businesses.

A.M. Best Co. rating service placed Great Lakes Casualty Insurance Company's financial strength rating of "B-minus (Fair)" under review with positive implications reflecting the acquisition news.

Best's financial strength rating of "A (Excellent)" of Main Street America's is unchanged.

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Main Street America To Acquire Great Lakes Casualty

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