AMERICAN FAMILY TO ACQUIRE HOMESITE FOR $616M

Wisconsin-based p/c group American Family Insurance has agreed to acquire Boston-based direct homeowners insurer Homesite Group for around $616m in a move that complements its core agent-based distribution system. The deal is expected to close by the end of the year. Homesite’s multiple owners include New York-based p/c re/insurer Alleghany Corp, private equity firm Metalmark Capital and Massachusetts-based p/c group Plymouth Rock. Homesite wrote $548m in premiums in 2012 through the internet, call centres and technology-enabled platform solutions. American Family posted $5.6bn in p/c premiums last year, primarily through its 3,500 exclusive agents. The group said that its network of agents will remain its primary distribution channel.