State Automobile Mutual Acquires Rockhill Insurance Group

State Automobile Mutual Insurance Co. said it has agreed to acquire Rockhill Insurance Group of Kansas City, Mo. Financial terms were not released.

Rockhill Insurance writes approximately $135 million in specialty property-casualty direct written premium through company subsidiaries, Rockhill Insurance Co.; Plaza Insurance Co.; American Compensation Insurance Co. and Bloomington Compensation Insurance Co.

Key business segments include commercial property; general liability for residential construction; commercial umbrella and surety; a monocline workers' compensation company named RTW; and a third party administrator providing workers' comp claim and loss services named Absentia.

Rockhill writes business on a non-admitted basis in 49 states and the District of Columbia, and is licensed on an admitted basis in 42 states and the District of Columbia.

State Auto said it intends to retain Rockhill's current management and associations, operating it as a stand-alone subsidiary. The company also said it does not plan to pool Rockhill's operations with the parent for the foreseeable future.

The transaction is expected to be completed in the first quarter of next year.

"Rockhill's strong underwriting culture and exceptional leadership will both complement and supplement State Auto's strategy and operations," said Bob Restrepo, State Auto's chairman, president and chief executive officer. He said the deal will allow the company to diversify its earnings and its portfolio of products it offers independent agents.

"Our policyholders, broker partners and employees can be comfortable that we are moving into a very stable relationship with an exceptional company," said Terry Younghanz, president and CEO of Rockhill.

Oldwick, N.J.-based insurance rating service A.M. Best Co. affirmed Rockhill's financial strength rating of "A-minus (Excellent)" and issuer credit ratings of "a-minus" of Rockhill Insurance Group and its four companies. The outlook for the ratings is stable.

State Auto's ratings were unaffected by the deal, Best said. Standard & Poor's also affirmed the company's "A" financial strength rating.

(This story was updated at 3:17 p.m.)