ACE Buys A Piece Of Atlantic Mutual

The Bermuda-based ACE Group of Companies announced today that it has signed a definitive agreement to acquire the high-net-worth personal lines business of the Atlantic Companies.

No financial terms were disclosed for the transaction, which ACE said is expected to close in 30 days.

The acquisition of the New York-based firm, ACE said, includes substantially all of the assets of the personal lines business of the Atlantic Companies, including systems, distribution arrangements and renewal rights.

As a result of the sale, the majority of the Atlantic Companies' personal lines employees will become employees of ACE, the company said.

According to Highline Data–an affiliated company of National Underwriter–Atlantic Mutual Group in 2006 had direct premiums written totaling $136.5 million.

The Atlantic Companies markets the Atlantic Master Plan (AMP) policy nationally through independent agents. The AMP policy includes coverage options for homeowners, automobile, umbrella liability and personal property insurance for affluent individuals and families.

Brian Dowd, ACE's chief executive officer for North America, said in a statement that Atlantic's personal lines complements ACE's existing personal lines capabilities, which include recreational marine and fine art.

He said the acquisition would allow the company “to offer a leading personal lines set of products to the high-net-worth market.”

Mr. Dowd called Atlantic's claims reputation “outstanding,” and said it has a solid technology platform to support the business.

According to regulatory data from New York, New Jersey and Connecticut, he said there were zero customer complaints against Atlantic.

The Atlantic purchase is the second ACE acquisition to be announced in four days. On Monday, the company said it was paying $2.4 billion to buy Glenview, Ill.-based Combined Insurance Company of America and some of its subsidiaries from Aon Corp.