The Hartford has entered into a definitive agreement to purchase Northern Homelands Company, the holding company of Maxum Specialty Insurance Group, for $170 million in cash."Today's acquisition supports The Hartford's strategy to profitably grow our business by investing in the product, underwriting and distribution capabilities that are making us a broader and deeper risk player," said The Hartford's President Doug Elliot. "The addition of Maxum, a well-respected excess and surplus lines company, accelerates our efforts to build upon our market-leading position in Small Commercial by expanding our product offerings and capabilities."
Maxum will maintain its brand and limited wholesale distribution model and will be managed as a separate unit within The Hartford's Small Commercial business. All Maxum employees will be offered continued employment at close and Maxum will remain headquartered in Alpharetta, Georgia.
"We are pleased to join an iconic company with a proven ability to adapt and redefine itself to remain relevant to customers and distribution partners," said Maxum CEO Marshall Turner. "We believe that as part of The Hartford we will have a stronger value proposition and greater opportunities to expand our products and market position. I would like to thank our customers and colleagues for the hard work and dedication that has allowed us to create a quality excess and surplus lines platform that is poised for continued success."
The transaction, which will not have a material impact on The Hartford's financial results, is expected to close in the third quarter of 2016, subject to obtaining regulatory approvals and other customary closing conditions.
About Maxum Specialty Insurance Group
Maxum Specialty Insurance Group was founded in 2003 by a highly experienced team of insurance industry experts. Maxum Specialty Insurance Group (Group) is comprised of Maxum Indemnity Company and Maxum Casualty Insurance Company. Maxum Indemnity is an authorized non-admitted excess and surplus lines insurer in 49 states; the District of Columbia; and the territories of Puerto Rico and the U.S. Virgin Islands. Maxum Casualty is an approved admitted carrier in 50 states and the District of Columbia. Both companies are domiciled in Delaware. Maxum writes business through a select group of primarily independent wholesale brokers and general agents. In the past few years, the Group has enjoyed significant growth and expansion into new markets. Today, the Group is rated A-VIII from A.M. Best and its statutory surplus has grown to more than $114.6 million. For additional information, call 866-387-4500 or visit www.mxmsig.com.
About The Hartford
With more than 200 years of expertise, The Hartford (NYSE: HIG) is a leader in property and casualty insurance, group benefits and mutual funds. The company is widely recognized for its service excellence, sustainability practices, trust and integrity. More information on the company and its financial performance is available at www.thehartford.com.