Austin Mutual Insurance Company to Become Affiliate of The Main Street America Group

MAPLE GROVE, Minn. & JACKSONVILLE, Fla.--(BUSINESS WIRE)-- The Main Street America Group, a super-regional property/casualty insurance carrier, and Austin Mutual Insurance Company, a Minnesota-domiciled regional P&C carrier, have reached an agreement to establish Austin Mutual as an affiliate of Main Street America.

The affiliation agreement, which has been approved by the boards of directors of both companies, is subject to regulatory approval from the State of Minnesota Insurance Commissioner’s Office as well as policyholders of Austin Mutual. The closing is projected to occur by midyear 2012.

“The Main Street America Group’s long-term strategy to sustain profitable growth is focused on spreading risk and increasing scale through geographic diversification and we will take another step in this direction by establishing an affiliation with Austin Mutual,” said Tom Van Berkel, chairman, president and chief executive officer of Main Street America, a mutual insurance holding company based in Jacksonville, Fla.

Van Berkel added, “Main Street America’s affiliation with Austin Mutual will build upon our 89-year history of serving the ‘Main Street’ marketplace exclusively through the independent agency distribution channel and will complement our existing relationships with 2,000-plus agent-customers. Austin Mutual has a well-established brand and serves a market niche similar to Main Street America’s. This is a good cultural fit for us and will help us grow in both existing states and new states.”

Austin Mutual, founded in 1896, will maintain its brand name and continue to sell its products via its network of independent agents. Under terms of the affiliation, Austin Mutual chairman, president and chief executive officer Jeffrey Kusch will continue to oversee the company’s daily operations out of its Maple Grove, Minn., headquarters (suburban Minneapolis/St. Paul metro) and report to Van Berkel. There will also be a management and services agreement in place between the two companies and Main Street America will provide Austin Mutual with quota share reinsurance.

Over the past four years, Main Street America has established a strong Midwest presence via an acquisition of Michigan-domiciled Great Lakes Casualty Insurance Company in 2008, and two other affiliations: Indiana-domiciled Grain Dealers Mutual Insurance Company in 2009 and Minnesota-domiciled Spring Valley Mutual Insurance Company in 2011.

About The Main Street America Group

With roots dating back to 1923, The Main Street America Group is a super regional insurance company that operates eight property/casualty insurance carriers: NGM Insurance Company, Old Dominion Insurance Company, Main Street America Assurance Company, MSA Insurance Company, Great Lakes Casualty Insurance Company, Grain Dealers Mutual Insurance Company, Spring Valley Mutual Insurance Company and Main Street America Protection Insurance Company. Based in Jacksonville, Fla., Main Street America offers a wide range of commercial and personal insurance, and fidelity and surety bond products to individuals, families and businesses throughout the United States.

With nearly $900 million in premium written exclusively by 2,000-plus independent insurance agents, the 88- year-old company insures more than 600,000 policyholders in 27 states and writes bonds in 46 states. A.M. Best Company rates The Main Street America Group as an "A" (Excellent). Main Street America is the founding company partner of Trusted Choice®, the global branding program of the Independent Insurance Agents & Brokers of America. Main Street America is also an investor in the Consumer Agent Portal. For more information about Main Street America, please visit www.msagroup.com or connect with us on Facebook at www.facebook.com/MainStreetAmerica.

The Main Street America GroupMark Friedlander, 904-380-7461
[email protected]

Source: The Main Street America Group