) announced a definitive agreement with
OneBeacon Insurance Group, Ltd.
) to purchase the latter's subsidiary, Essentia Insurance
Company. The transaction is expected to culminate in January next
year, subject to the attainment of regulatory approval and other
customary closing conditions. However, financial and other terms
of the transaction were not divulged.
OneBeacon will continue to maintain the loss reserves and
unearned premium reserves related to the business written by
Essentia before the completion of the takeover. These reserves
will be written off by the company in due course.
Currently, Essentia underwrites insurance solely for Hagerty
Insurance Agency and Hagerty Classic Marine Insurance Agency. The
company will continue to do so following the takeover.
However, OneBeacon is ending its exclusive underwriting
arrangement with Hagerty Insurance Agency. These companies had a
five-year old business relationship that is being terminated due
to inability to reach mutually acceptable terms for an
Hagerty is a privately-owned insurance provider for classic
cars, vintage boats, motorcycles and related automotive
collectibles. The company is the global leader in providing
insurance coverage for classic vehicles and caters to the biggest
network of classic car owners.
Markel aims to ensure a smooth transition so that it can offer
the same specialized products and services and claim handling
that the clients and agents of Hagerty are used to. Moreover, the
company's association with Hagerty is expected to be strong since
both the companies deal with specialty and niche insurance
markets and focus on providing insurance coverage for collector
Markel, which competes with
The Travelers Companies, Inc.
Meadowbrook Insurance Group Inc.
), carries a Zacks #1 Rank (short-term Strong Buy). We maintain a
long-term 'Outperform' recommendation on the stock.
MEADOWBROOK INS (MIG): Free Stock Analysis
MARKEL CORP (MKL): Free Stock Analysis Report
ONEBEACON INSUR (OB): Free Stock Analysis
TRAVELERS COS (TRV): Free Stock Analysis
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