Madison-based American Family Insurance has reached agreement to acquire PGC Holdings Corp. (Permanent General Companies) and its subsidiaries, including non-standard auto insurers Permanent General and The General.
The agreement was announced today by American Family and Capital Z Partners, majority owner of PGC Holdings Corp. Closing of the anticipated $239 million transaction is targeted for later this year, subject to regulatory approval.
“American Family Insurance will grow by reaching out to customers in new states and new markets, and also by strengthening our appeal to customers in our existing states,” said Jack Salzwedel, American Family chairman and chief executive officer. “This acquisition expands our holdings to include a company with different capabilities that also operates in some states we don’t currently serve. It also provides American Family an opportunity to learn from a company with successful experience in direct insurance sales.”
Nashville, Tenn.-based PGC Holdings, which specializes in insuring higher-risk drivers, will remain a completely separate brand from American Family and will continue to operate as a separate entity. Employee positions will be retained, and Randy Parker will continue in his role as Permanent General’s chief executive officer.
“This is an exciting day for PGC and our associates,” Parker said. “We are looking forward to the opportunities and potential growth that can be achieved by aligning with a company that is financially strong, service-driven and focused on providing outstanding value to its customers. We feel strongly that it’s the right time and right company for PGC to partner with as we continue to expand our national presence.”
American Family is one of the nation’s largest property-casualty mutual insurance companies, with annual direct written premium of $5.4 billion. The multi-line company sells auto, home, business, farm/ranch and life insurance in 19 states through its network of 3,500 agents.