Super-regional insurer American Family Insurance says it has closed on the acquisition of a "high decorated" direct auto insurance provider.
The General is now rallying the non-standard auto market troops for American Family after the carrier bought Nashville-based parent company Permanent General Cos. and other subsidiaries of PGC Holdings Corp. for $239 million.
The transaction was with former majority-owner Capital Z Partners.
Permanent General, founded in 1963, and its affiliated companies will now be known under one brand—The General.
American Family CEO Jack Salzwedel says it'll be "business and usual" for The General, "as they operate with a high degree of autonomy."
"Permanent General reaches a different consumer segment than American Family, so in that sense we're diversifying vertically," adds Salzwedel in a statement. "They also operate in states American Family doesn't currently serve, and they have extensive experience in direct distribution, so those aspects bring additional diversification."
Madison, Wisc.-based American Family provides multiple lines of insurance through its agents in 19 states.
The General sells its products to 25 states via the Internet, call centers and some independent agents. It plans to add two more states—Utah and West Virginia—this year.
American Family agents will remain the exclusive sellers of the carrier's products. Agents who sell The General products will not sell American Family policies.
All employees of The General will be retained. Randy Parker will continue to serve as CEO.
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