SOUTHFIELD, Mich.--Meadowbrook Insurance Group Inc. has agreed to purchase U.S. Specialty Underwriters Inc. in a deal valued at $23 million.
Under the terms of the agreement, Meadowbrook will acquire Cleveland-based USSU, a specialty program manager that produces fee-based income by underwriting excess workers compensation coverage for a select group of insurers.
The purchase price is a combination of $13 million in cash and $10 million in Meadowbrook stock, Southfield, Mich.-based Meadowbrook said in a statement.
Robert S. Cubbin, Meadowbrook's president and chief executive officer, in the statement said the deal would complement the company's existing public entity excess workers compensation program.
USSU CEO Daniel J. Clark, meanwhile, noted in the statement that "the expanded resources and support" provided by Meadowbrook would position USSU to continue to grow in the excess workers compensation arena.