Policyholder members approve merger with Main Street America
Move will provide more choices for agents and policyholders, continued growth and financial strength for both companies
Policyholder members of American Family Insurance Mutual Holding Company have approved the company’s merger with Florida-based Main Street America Group Mutual Holdings, Inc.
Members of American Family Insurance Mutual Holding Company (American Family) have voted to approve the company’s merger with Florida-based Main Street America Group Mutual Holdings, Inc. (Main Street America).
The merger was approved today at American Family’s headquarters in Madison, receiving more than 86 percent support from votes cast by proxy or in person. Main Street America members approved the merger at a member meeting Oct. 19, with more than 90 percent of votes cast in favor.
“Today’s approval affirms our policyholder members’ trust in us as their insurance partner – and for that American Family is extremely grateful,” said Jack Salzwedel, American Family chair and CEO. “As a company, we are deeply focused on building trust in everything that we do, from exceptional service, to customer-focused products, to support of communities where we do business. The merger with Main Street helps us improve in each of these areas.”
Main Street America has a robust commercial insurance business, and its strong presence in east coast states complements the American Family brand footprint and helps reduce the geographic concentration risk of Midwest storms. While American Family sells its branded products primarily through exclusive agents, Main Street America uses independent agents, offering the American Family group of companies a new sales channel.
“Our policyholder members’ positive vote in support of our merger with American Family ensures we will continue to offer high-quality products and services through independent insurance agents for generations to come,” said Tom Van Berkel, Main Street America’s president and CEO. “Our commitment to our members remains stronger than ever, and we will utilize our combined capabilities to strengthen the service we deliver.”
Main Street America will operate as a stand-alone brand within the American Family Insurance group, similar to The General and Homesite, acquired in 2012 and 2013, respectively. The combined equity of the merged entities is expected to be more than $9 billion.
Service, coverage, premium rates and claims handling under existing American Family insurance policies are unaffected by the merger with Main Street America.
The merger was previously approved by state insurance regulators in Wisconsin, Florida, Indiana, Minnesota and South Carolina, and by the American Family and Main Street America boards of directors.
The merger is effective on Oct. 31. At that time, Tom Van Berkel and Idalene F. Kesner, a Main Street America board member since 2010, and dean and professor of strategic management at Indiana University Kelley School of Business, will join the board of directors of American Family Insurance Mutual Holding Company.
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.
About Main Street America
With roots dating back to 1923, the Main Street America group of companies write business through eight property/casualty insurance carriers. Based in Jacksonville, Florida, Main Street America offers a wide range of commercial and personal insurance, as well as fidelity and surety bond products, to individuals, families and businesses throughout the United States. With more than $1.2 billion in premium written exclusively by 3,000 independent insurance agents, the 95-year-old company underwrites over 600,000 property/casualty policies in 37 states, as well as 50,000 bonds in 47 states and the District of Columbia. Web www.msagroup.com; Facebook www.facebook.com/MainStreetAmerica