The Main Street America Group completed its affiliating with Austin Mutual Insurance Co., giving it greater access to midwest and western states.
The affiliation of Austin Mutual, a Maple Grove, Minn.-based carrier, into the Jacksonville, Fla.-based super regional company wasa approved by the Minnesota insurance commissioner and Austin Mutual policyholders. Austin Mutual is a regional carrier which writes personal lines and commercial lines in nine midwest and western states.
Main Street America will offer some of its products through Austin Mutual agents, beginning in in late July when Main Street America launches its Main Line Business Owners Policy and other commercial products in Minnesota through its Spring Valley Mutual Insurance Co. agents and Austin Mutual agents.
Over the past few years, Main Street America has established a growing Midwest presence via its acquisition of Michigan-domiciled Great Lakes Casualty Insurance Co. in 2008 and two other affiliations: Indiana-domiciled Grain Dealers Mutual Insurance Co. in 2009 and Minnesota-domiciled Spring Valley Mutual Insurance Co. in 2011.
“Our affiliation with Austin Mutual is another step in fulfilling our company’s long-term strategy of increasing scale through geographic diversification,” said Tom Van Berkel, chairman, president and chief executive officer of The Main Street America Group. “This will help us expand our midwest presence and enable us to enter several western states.”
Financial terms of the deal were not disclosed.
As part of the deal, Main Street America is providing Austin Mutual with a quota share reinsurance agreement.
Austin Mutual will maintain its brand name and continue to sell its existing products through their independent agent network.
Austin Mutual chairman, president and CEO Jeffrey Kusch will continue to oversee the company’s daily operations out of its Maple Grove headquarters and report to Van Berkel. Austin Mutual’s employees will continue to report up through Kusch.
