New York-based Magna Carta Companies insurance group announced today that the firm has entered into an agreement to assume the commercial lines book of business of Palisades Property and Casualty Insurance Company.
The company, which did not disclose financial details, said its deal does not include acquisition of the Berkeley Heights, N.J.-based insurer's personal and commercial auto business.
Magna Carta said the strategic partnership will grow its New Jersey producer plant threefold by adding approximately 195 New Jersey-based independent agents.
The initial focus, said Magna Carta, will involve a renewal book of business comprised of approximately $20 million in combined premium for commercial lines and dwelling fire. Subject to regulatory approval, the firm said it expects renewals will begin transferring as early as October of this year.
In addition, Magna Carta Companies said it will use the expanded producer plant in New Jersey to write new commercial business in all of its core lines.
On Aug. 1 Palisades acquired the National Atlantic Holdings Corp., including its subsidiary, the Proformance Insurance Company. Proformance was subsequently re-named Palisades Property and Casualty Insurance Company.
Palisades, Magna Carta said, is now the largest independent agency writer of personal automobile insurance in New Jersey.
Andrew L. Furgatch, Magna Carta Companies chairman and chief executive officer, said, “We are pleased to be partnering with Palisades in underwriting these commercial lines of business and look forward to expanding our writings through the network of Palisades independent agents in New Jersey.”
Ed Fernandez, Palisades president and CEO, said his firm shares “the same commitment to outstanding service, competitive products and independent agents. Their [Magna Carta] commercial lines offerings will be a perfect complement to the Palisades commercial auto product, and we are excited to grow our business together.”
Magna Carta Companies is a property-casualty insurance group operating through Public Service Mutual Insurance Company, Paramount Insurance Company and Western Select Insurance Company.
The company said that since its founding in 1925, its group has grown to become “one of the largest mutual insurance organizations in the United States.”
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