Two Ohio property-casualty insurers, Miami Mutual Insurance Company and Celina Insurance Group, said they have agreed to combine their financial resources and affiliate.
William R. Walters, president of Miami Mutual Insurance in Troy, Ohio, said he would act as president for the combined operation. William W. Montgomery, president and chief executive officer of Celina, based in Celina, Ohio, will serve as chief executive officer.
"This is an excellent opportunity for both companies. The synergies of our combined operations will make a stronger, more dynamic group of companies and improve our ability to serve our agents and policyholders," Mr. Montgomery said in a statement.
Mr. Walters said the two companies "share similar cultures and many of the same core values. This is a natural fit that creates greater opportunities for both organizations."
Upon regulatory approval of the affiliation, Miami will pool its premiums, losses and underwriting expenses with the other member companies of the Celina Insurance Group.
Mr. Montgomery said the two firms are "pretty optimistic" the affiliation plan will receive approval from the Ohio Insurance Department.
He said the companies' move was "a positive development and not a distress situation. There will be some integration issues, but the cultures do mesh in this case."
Among the integration issues mentioned by Mr. Montgomery are duplicative products–both companies have farm lines and homeowners offerings. Miami uses outside adjusters, so the joined companies would use Celina's in-house adjusters for all claims. Also, the two information technology systems would be reduced to one, and reinsurance coverage would be combined.
At year-end 2005, the combined companies wrote nearly $80 million in premiums and had more than $120 million in assets. The companies currently operate in eight Midwestern states through independent agents.
Mr. Walters said Miami in 2005 had more than $14 million in premiums written and employs 32 people in Ohio, Indiana and Minnesota. Miami, established in 1877, currently offers farmowner, homeowner, commercial and specialty coverages.
Celina Insurance Group, founded in 1914, is a family of mutual property and casualty insurance companies writing auto, nonstandard auto, home, commercial auto, commercial property and casualty, umbrella, and farm coverages. The company has 145 employees and wrote more than $65 million in premium last year.
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