Everett Cash Mutual announces a 'game-changer'

Everett Cash Mutual Insurance Co. on Tuesday announced the purchase of suburban Philadelphia-based American Reliable Insurance Co. (ARIC), a move that Randy Shaw, president and CEO of Everett Cash Mutual (ECM), termed "a game-changer for us.

Shaw, stated that "Everett Cash Mutual Insurance Co., founded in 1913, is committed to serving the insurance needs of the agricultural community." He added that "ECM's acquisition of ARIC will shift ECM from a regional carrier to a national provider with combined gross written premium approaching $200 million. We look forward to engaging with American Reliable employees and agents in the coming days."

The purchase of ARIC, a subsidiary of Global Indemnity Group LLC (GBLI), is contingent on regulatory approvals and other conditions, according to a news release from GBLI. The sale is expected t close in or before the first quarter of 2023.

According to the news release, GBLI, based in Scottsdale, Arizona, will receive approximately $85 million, including the release of capital currently supporting ARIC's operations (over the course of the next 12 months). GBLI will receive $30 million for the sale of renewal rights and will receive an amount equal to surplus when ARIC is sold.

The purchase expands the reach of ECM, which deals primarily with agriculture-based insurance products to all of the lower 48 states and the District of Columbia.

"We were what you might call a super-regional company," Shaw said. "This will make us a national writer."

With the purchase, ECM will see its number of employees rise from roughly 67 to 113, but it will not have a dramatic effect on Bedford County operations, Shaw said.

"In today's environment, the majority of insurance folks are working remotely, in most cases out of their homes," Shaw said.

He said the deal was about two years in the making.

Shaw said he approached Global Indemnity about a possible purchase at that time, but at that point GBLI was not interested. That changed about a year ago when GBLI sold off another portion of its business and it made sense for them to sell ARIC's farm business as well.

The announcement was a major bit of good news for the area, according to Betty Slayton, president and CEO of the Bedford County Development Association.

"This transaction is exciting news for Bedford County. ECM has grown into a national insurance company, headquartered in Bedford County. What wonderful success story.

"Bedford County's economy continues to grow and diversify. Our local companies continue to put us on the map," she said.