American Family Insurance buys PGC Holdings Corp.
Oct. 1, 2012—American Family Insurance has acquired PGC Holdings Corp. and its subsidiaries for $239 million, according to a news release_notes.
The transaction is expected to close later this year.
“American Family Insurance will grow by reaching out to customers in new states and new markets, and also by strengthening our appeal to customers in our existing states,” said Jack Salzwedel, American Family chairman and chief executive officer. “This acquisition expands our holdings to include a company with different capabilities that also operates in some states we don’t currently serve. It also provides American Family an opportunity to learn from a company with successful experience in direct insurance sales.”
PGC Holdings, or Permanent General Companies, will continue to operate as a separate brand and a separate entity. All employees will stay on, and Randy Parker will remain Permanent General’s chief executive officer, according to a news release.
“This is an exciting day for PGC and our associates,” Parker said. “We are looking forward to the opportunities and potential growth that can be achieved by aligning with a company that is financially strong, service-driven and focused on providing outstanding value to its customers. We feel strongly that it’s the right time and right company for PGC to partner with as we continue to expand our national presence.”
American Family is also purchasing Lumbermens Casualty Insurance Company (LCIC), a subsidiary of Lumbermens Mutual Casualty Company in Illinois. The sale will be finalized on Oct. 1.