Main Street America Group Enters Minnesota Market

Jacksonville-based Main Street America Group has reached an agreement with Minnesota-domiciled Spring Valley Mutual Insurance Co. to become an affiliate of the Florida super regional property & casualty insurance carrier.

The affiliation has been approved by the Minnesota Department of Commerce Insurance Commissioner's Office. The state's recent action follows approvals by the boards of directors of both companies, as well as approval by Spring Valley Mutual members at a special policyholders' meeting held in July 2011. Closing of the transaction is scheduled for Thursday, September 15; terms were not disclosed.

“The Main Street America Group's long-term strategy to sustain profitable growth is focused on spreading risk and increasing scale through geographic diversification,” says President, Chairman and CEO Tom Van Berkel. “This is why we have expanded into 11 new states over the past three years.”

Spring Valley Mutual, based in Spring Valley, Minn., provides farm owners and homeowners coverage to approximately 6,000 policyholders throughout Minnesota. In 2010, Spring Valley generated $9.3 million in net written premium. Like Main Street America, it offers its products through the independent agency distribution system. It will continue to operate from its Spring Valley headquarters and will become a part of Main Street America's Midwest Region.

The Main Street America Group operates seven property-casualty insurance carriers: NGM Insurance Co., Old Dominion Insurance Co., Main Street America Assurance Co., MSA Insurance Co., Great Lakes Casualty Insurance Co., Grain Dealers Mutual Insurance Co., and Main Street America Protection Insurance Co.

The company currently writes nearly $900 million in premium and insures more than 600,000 policyholders in 27 states and writes bonds in 44 states. A.M. Best Company rates The Main Street America Group as an “A” (Excellent).