Sentry Insurance buys Anchor of Montgomery

March 06--A national insurance giant is purchasing a third-generation, Montgomery-based agency.

Anchor Managing General Agency offers commercial coverage in Alabama, Georgia, Mississippi and Tennessee through a network of 350 independent insurance agents. It was formed in the Capital City in 1992 as the successor to a family-owned business dating back another 40 years.

Sentry Insurance is buying Anchor and will assume underwriting responsibility going forward. Sentry, with assets of $12 billion, is one of the nation's largest mutual insurance companies and holds an A-plus or "superior" rating by A.M. Best. It serves more than 1 million policyholders.

"Needless to say I am very excited about the future for Anchor MGA," Anchor CEO John W. "Billy" Kitchens said. "My father would be so pleased to know that Sentry's investment in Anchor will provide our agents with a strong future to build on."

Anchor's products are designed with small businesses in mind and include property policies, inland marine policies, general liability policies and commercial automobile policies. Its customers include churches, offices, hotels, apartments and hotels.

The company said in a release that it would gain market stability through the buyout, which also will allow its agents to write business using Sentry's lofty rating.

"The strength Sentry brings, added to Anchor's years of knowledge and service to independent agents in the Southeast will be a win-win partnership for independent agents and policyholders alike," Anchor President Frank W. Smith, Anchor said in the release.

Sentry was formed 110 years ago in Wisconsin and now employs more than 4,000 people in 41 states. Through its subsidiaries, it sells property and casualty insurance, life insurance, annuities and retirement programs for businesses and individuals throughout the country.

Company leaders said Anchor would be a valuable addition to that business network.

Sentry said current Anchor employees will become Sentry associates and will continue to work from Montgomery.

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