Donegal Mutual Insurance announced Thursday that it has completed the acquisition of Mountain States Mutual Casualty.
Lancaster Online reported that the firm did not field a single cent to acquire Mountain States, which had net written premiums worth US$33 million (approximately NZ$47 million) in 2016 in New Mexico, Colorado, Texas and Utah.
The states are all new markets for Donegal and are expected to provide “significant future growth over time,” the publication reported.
The report said that Mountain States has “been unprofitable in recent years,” in its line of commercial business.
Donegal Mutual offers personal and commercial insurance. It employs almost 1,000 workers that serve 21 states.
The company said on its website of its mergers and acquisitions strategy, “As an effective acquirer of small to medium-sized “main street” property and casualty insurers, Donegal Group has grown profitably for more than two decades. Donegal Group employs a multi-faceted strategy that includes prudent organic and acquisition growth, conservative underwriting, pricing discipline, superior technological capabilities, efficient operations and conservative investing.”
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