While many insurance companies are consolidating their holdings, State Automobile Mutual Insurance Company is expanding their business. In an announcement made on November 18th, the company shared that it has agreed to purchase Kansas City, Missouri-based Rockhill Insurance Group, with a closing expected sometime in the first quarter of 2009.
Rockhill Insurance Group, through its four subsidiaries, writes about $135 million in specialty property and casualty business, with key business segments including general liability for residential construction, commercial umbrella and surety, and commercial property, as well as Absentia, which is a third-party administrator that provides worker’s compensation claim and loss control services, and RTW, a monocline workers’ compensation insurance company. The company does business on an admitted basis in Washington, D.C. and 42 states, and on a non-admitted basis in D.C and 49 states.
State Auto intends to operate Rockhill as a stand-alone subsidiary, retaining their existing management and associates.
In a statement to the press on Tuesday, Bob Restrepo, State Auto’s Chairman, President, and CEO said, “Rockhill’s strong underwriting culture and exceptional leadership team will both complement and supplement State Auto’s strategy and operations. Rockhill allows us to diversify our base of earnings and the portfolio of products we offer our independent agency partners. In addition, we will benefit from both the talent and technology Rockhill brings to the State Auto family of companies. I am confident that our successful track record in integrating acquisitions and affiliations will make the addition of Rockhill seamless and successful for our mutual policyholders and associates.”
Rockhill’s President and CEO, Terry Younghanz, also seemed optimistic about the new arrangement, stating, “Our team is excited as we move to the next generation with a partner that embraces our future and shares our technical underwriting culture. Our policyholders, broker partners and employees can be comfortable that we are moving into a very stable relationship with an exceptional company.”