Unified agrees to sell insurance operations

Unified Grocers said Wednesday it has reached a definitive agreement to sell its insurance businesses to AmTrust Financial Services, a New York-based insurance holding company.

It said it anticipates the transaction, for an undisclosed sum, will close in between 90 and 120 days, subject to regulatory approval and other customary closing conditions.

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“We’re proud we were able to provide our retailers with insurance programs tailored to the unique demands of the grocery business," said Bob Ling, president and CEO of Unified, a Los Angeles-based member-owned cooperative. "At the same time, the transaction allows Unified to streamline its business structure and direct greater focus to its core grocery wholesale operations.”

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Under terms of the agreement, AmTrust will purchase Springfield Insurance Co., Unified Grocers Insurance Services and related operations, along with the building in Covina, Calif., where the operations are housed, and it also agreed to hire all employees.

“We believe this transaction to be in the best interests of clients of both Springfield Insurance and UGIS as [AmTrust is] a forward-looking, successful company that can apply a dedicated focus to its clients,” Ling said.

“The transaction will be seamless to policyholders. They will benefit from the strength of a $4-billion insurance provider — with an ‘A’ rating from A.M. Best [an insurance ratings company] — and its wide portfolio of insurance products.”

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