American Family seeks policyholder approval of merger
Merger with Main Street America will help ensure financial strength to meet customer needs
American Family will ask for policyholder approval of the proposed merger, announced in May, with an information packet and proxy mailing to American Family members beginning today.
In May, American Family Insurance Mutual Holding Company (American Family) announced a planned merger with Main Street America Group Mutual Holdings, Inc. (Main Street America), a property-casualty mutual holding company based in Jacksonville, Florida.
American Family will now ask for member approval of the merger, with an information packet and proxy mailing to American Family members beginning today.
Main Street America is also seeking approval from its members. The merger already has been approved by state insurance regulators in Wisconsin, Florida, Indiana, Minnesota and South Carolina, subject to American Family and Main Street America member approval.
Merger supports financial strength
A vote “For” the merger will, among other things referenced in the information packet, help American Family continue evolving its products and distribution channels to meet changing customer needs, resulting in continued growth. The merger supports the company’s financial strength in a number of ways, and the combined equity of the companies is expected to be in excess of $9 billion.
The proposed merger will make Main Street America part of the American Family enterprise. The merger will enable both companies to expand their product offerings and distribution channels, reaching more customers and spreading policies over a larger number of states, which decreases the financial risk of regional storms.
Coverage and customer service under existing American Family and Main Street America policies would not be affected by the merger.
“We plan to be financially strong and restoring customers’ lives for decades to come,” says American Family Chair and CEO Jack Salzwedel. “The merger is part of how we’ll continue to do this.”
Adoption of the merger requires American Family and Main Street America member approval of at least 66 percent and 51 percent, respectively, of ballots cast. Voting closes on Oct. 19. As an alternative, members can cast their vote in person at a special member meeting on Oct. 24 at the company’s national headquarters.
About American Family Insurance
Madison, Wisconsin-based American Family Insurance group is the nation's 13th-largest property/casualty insurance group and ranks No. 311 on the Fortune 500 list. The company sells American Family-brand products, including auto, homeowners, life, business and farm/ranch insurance, primarily through its exclusive agents in 19 states. American Family affiliates (The General and Homesite) also provide options for consumers who want to manage their insurance matters directly over the internet or by phone. Web www.amfam.com; Facebook www.facebook.com/amfam; Twitter www.twitter.com/amfam