Arizona workers comp insurer secures foothold in CaliforniaReprints
CopperPoint Mutual Insurance Co., based in Phoenix, on Wednesday said it has acquired California insurer Pacific Compensation Insurance Co. from Alleghany Insurance Holdings L.L.C., a subsidiary of Alleghany Corp., for $150 million in cash.
The combined book of underwriting business for the two comp insurers will represent approximately $400 million in premium and a combined asset base of nearly $4.1 billion, with $1.5 billion in policyholder surplus, CopperPoint said in a statement.
The deal is expected to close at the end of the year subject to customary closing conditions and regulatory review and approvals, according to CopperPoint.
The acquisition of West Lake Village, California-based PacificComp is a milestone in CopperPoint’s geographic expansion and diversification initiatives, the insurer said.
“We are similar in our philosophies and the way we approach workers comp,” CopperPoint CEO Marc Schmittlein told Business Insurance. “We are really excited to be acquiring talent and the business.”
Mr. Schmittlein said CopperPoint already does business in California but wanted a stronger presence in the state. “This is just our chance to have a domicile partner in California, which allows us to get our brand in the state.”
PacificComp will retain its name and leadership, but both insurers will fall under new parent company, CopperPoint Family of Companies, he added.
Jan Frank, CEO of PacificComp, said the acquisition is an “ideal strategic and cultural fit for our employees, broker partners and policyholders that will allow us to continue our service to the market without interruption and provide us with the ability to expand the products and services we offer.”
“Our companies share a strategic vision for the continued expansion of the business and an approach to the marketplace,” Ms. Frank said in the statement.