NU Online News Service, April 3, 12:19 p.m. EDT
Dearborn, Mich.-based insurer Auto Club Insurance Association (ACIA) said it has acquired MEEMIC Insurance Company and its insurance agency affiliate MEEMIC Insurance Services Corp. Terms of the deal were not released, a company spokeswoman said.
ACIA said the acquisition is expected to provide both companies with further access to complementary, highly attractive market segments, a platform for growth in other states, and economic synergies.
ACIA offers a full range of personal lines insurance products and services through a network of 725 captive agents and more than 1,000 independent agents located throughout the Midwest.
It is an affiliate of AAA Auto Club Group, which provides membership, travel and financial services to over 4.1 million members in Illinois, Indiana, Iowa, Michigan, Minnesota, Nebraska, North Dakota and Wisconsin.
According to Highline Data, a unit of National Underwriter's parent company Summit Business Media Co., in 2008 ACIA reported direct written premiums of $1.19 billion and a net loss of $83 million for the year. In prior years, the company reported net income of $90.5 million in 2007 and $104 million in 2006.
Headquartered in Auburn Hills, Mich., MEEMIC provides auto, homeowners, boat and umbrella insurance to employees of educational institutions and their families. Its workforce includes approximately 130 employees and a network of more than 70 captive agents primarily serving customers in Michigan. It was previously owned by GMAC Financial Services and its affiliates.
According to Highline Data, in 2008 MEEMIC reported gross written premium of $184 million and net income that year of $10.7 million.
Steven D. Monahan, who was president and chief operating officer of ACIA, has been named the new president and chief executive officer of MEEMIC. ACIA said MEEMIC will be managed separately as a wholly-owned subsidiary of ACIA and continue to operate under the MEEMIC name.
The company spokeswoman said there are currently no plans for ACIA agents to sell MEEMIC products.
This story was updated at 1:33 p.m. EDT
© 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.