The Hartford has entered into an agreement to purchase Northern Homelands Company, the holding company of Maxum Specialty Insurance Group, for $170 million in cash.
The acquisition “supports The Hartford's strategy to profitably grow our business by investing in the product, underwriting, and distribution capabilities that are making us a broader and deeper risk player,” said The Hartford's president, Doug Elliot. “The addition of Maxum, a well-respected excess and surplus lines company, accelerates our efforts to build upon our market-leading position in small commercial by expanding our product offerings and capabilities.”
Maxum will maintain its brand and limited wholesale distribution model and will be managed as a separate unit within The Hartford's small commercial business, the company said in a statement. All Maxum employees will be offered continued employment at close and Maxum will remain headquartered in Alpharetta, Georgia.
“We are pleased to join an iconic company with a proven ability to adapt and redefine itself to remain relevant to customers and distribution partners,” said Maxum's chief executive officer, Marshall Turner. “We believe that as part of The Hartford we will have a stronger value proposition and greater opportunities to expand our products and market position. I would like to thank our customers and colleagues for the hard work and dedication that has allowed us to create a quality excess and surplus lines platform that is poised for continued success.”
The transaction, which The Hartford said would not have a material impact on its financial results, is expected to close in the third quarter of 2016, subject to obtaining regulatory approvals and other customary closing conditions.
Learn more: www.mxmsig.com; www.thehartford.com.
Victoria Spears
Victoria Prussen Spears is senior vice president of Meyerowitz Communications Inc., a law firm marketing communications consulting company. A graduate of Sarah Lawrence College and Brooklyn Law School, Ms. Spears was an attorney at a leading New York City law firm before joining Meyerowitz Communications. She may be contacted at [email protected].