Munich Re said today it has concluded its $1.3 billion acquisition of Midland Insurance as part of an expansion move in the United States announced last October.
The Munich-based company said it was strengthening its position in U.S. primary insurance niche segments.
Midland, acquired for EUR900 million, or $65 per share, has as its insurance subsidiary American Modern Insurance Group.
Munich said its new acquisition had premium income of $967 million last year and is a leading specialty insurer in such niche segments as motorcycle and recreational vehicle insurance.
Additionally, Midland is one of the top three providers of manufactured housing insurance, operating through specialist companies and via various distribution channels.
Munich Re said last year it restructured its U.S. business in order to significantly increase its profitability in the United States.
The company said it is focusing on the introduction of a client-centric organization and the expansion of broker business, as well as building on its leading position in primary insurance niche segments.
Peter R?der, the member of Munich Re's board of management responsible for business in North America, said, “The acquisition of Midland is a significant step toward profitable growth in the world's most important insurance market, the U.S.A.”
Tony Kuczinski, president of Munich Re America, said the Midland organization has “a very focused mindset on underwriting profitability, a strong and dedicated management team, and a wonderful group of associates.”
© Arc, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to TMSalesOperations@arc-network.com. For more information visit Asset & Logo Licensing.