Motorists Insurance Expands
By Mark E. Ruquet
NU Online News Service, June 30, 9 :44 p.m. EDT?Motorists Insurance Group based in Columbus, Ohio, announced the expansion of the company West of the Mississippi through an affiliation agreement with Iowa Mutual Insurance Company of DeWitt, Iowa.
Under the terms of the agreement, John J. Bishop, chairman, president and chief executive officer of Motorists Group, would become chairman and CEO of Iowa Mutual. James D. Owen Jr., current CEO of Iowa Mutual, would retire but remain a member of the board of directors.
Under the agreement, both companies would pool their resources together, allowing each company to extend its reach and resources, said Paul Richards, manager of corporate communications for Motorists Insurance.
Mr. Richards said there is no purchase price involved in the agreement and that Motorists Insurance would have executive authority over Iowa Mutual. Iowa Mutual would also pool its premium, losses and underwriting expenses with the other companies in the group, Motorists said.
Motorists Insurance Group consists of four property-casualty companies, a life insurance company and two brokerage firms. The group writes commercial policies in 35 states and life and personal lines in Ohio, Pennsylvania, West Virginia, Kentucky, Indiana, Wisconsin and Tennessee.
Motorists Group reported that it wrote more than $467.4 million in net written premium in 2002. Iowa Mutual reported $41 million in direct written premium for 2002.
Completion of the agreement is subject to regulatory approval by both Ohio and Iowa insurance departments, which the company said it expected soon. The agreement is also subject to the approval of Iowa Mutual shareholders.
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