The transaction is subject to the approval of the Florida Office of Insurance Regulation.
According to Applied Underwriters, the deal will enable the development and expansion of its offerings in the US. The acquired specialty lines business will be folded into Applied Underwriters’ newly formed Applied Warranty & Insurance Services division.
Following the transaction, all current Generali policies and contracts will be honored as the business transitions. In addition, Jose Luis Menendez – who previously served as executive vice president and chief insurance officer for Generali – will serve as president of Applied Warranty & Insurance Services. He will lead the unit’s US expansion with new programs realized through Applied’s substantial network of agents and brokers.
"We will immediately assume all risks on a reinsurance basis through North American Casualty’s Continental Indemnity Company and move rapidly into new focal areas through the new Applied Warranty & Insurance Services division,” explained Applied Underwriters chairman Steve Menzies.
Menzies also added that Applied Underwriters recognizes Menendez’s leadership of Generali’s specialty lines division, and that the company welcomes both Menendez and his team.
"We have varied, flexible and market-wise products that prove eminently useful in the real worlds of warranty, travel insurance, personal electronics and such specialties as event ticket cancellation and similar lines,” commented Menendez. “Applied will bolster our ability to grow and deliver enhanced and newly designed products."
The offices of Applied Warranty & Insurance Services will remain in Miami, FL after the transaction.