Business Moves

Fremont Michigan, Auto Club

Fremont Michigan InsuraCorp Inc., a Michigan-exclusive property and casualty insurer, agreed to be acquired by Auto Club Insurance Association (ACIA), also based in Michigan.

Under the terms of the announced merger agreement, ACIA will acquire all of the outstanding shares of Fremont for $36.15 per share in cash, for an aggregate purchase price of approximately $67.7 million.

The $36.15 per share purchase price is approximately 35 percent higher than the $26.75 per share closing price of FMMH on April 15, 2011, the last trading day prior to the merger announcement. The purchase price equals approximately 1.4 times the GAAP book value of Fremont at Dec. 31, 2010.

The transaction was unanimously approved by Fremont’s board of directors. The purchase will be made with ACIA’s available cash. The transaction is subject to customary closing conditions and is expected to close in the third quarter of 2011.

In January, Fremont announced plans to explore a range of strategic alternatives to enhance shareholder value after rebuffing several takeover bids by Texas-based Biglari Holdings Inc. Biglari Holdings retains approximately 9.7 percent of Fremont stock.

Certain other stockholders representing approximately 16 percent of Fremont’s stock, including Mitchell Partners L.P., holder of approximately 9.9 percent of Fremont’s stock, have signed a shareholders agreement committing to vote their shares in favor of the transaction, subject to the terms of the shareholders agreement.

Fremont Michigan InsuraCorp Inc. is the holding company for Fremont Insurance Co. Headquartered in Fremont, Mich., the company provides property and casualty insurance to individuals, farms and small businesses exclusively in Michigan.

Auto Club Insurance Association and its affiliates offer a range of personal lines insurance products and services to more than 4.2 million members in Illinois, Indiana, Iowa, Michigan, Minnesota, Nebraska, North Dakota and Wisconsin.

Insurance Industry Charitable Foundation

The Insurance Industry Charitable Foundation launched a Chicago/Midwestern Division. Presently operating a California/Western Division and a New York/Northeast Division, the Foundation expanded to include a third operating division centered in Chicago and serving the Midwest region of the United States.

Twelve companies operating in the Chicago area have committed to serving on the Chicago board helping to launch and expand the Foundation.

“Founder Circle” board members ACE Group, CNA, McKinsey & Co., Willis Group Holdings and Zurich North America will be serving along with board members from Chubb, Dewey & LeBoeuf, Hub International, Lloyd’s America, Lockton, Swiss Re and Wells Fargo Insurance Services.

The Chicago/Midwestern Division will initially focus on serving the Chicago area, but will continue expanding its reach to involve other Midwestern states: Indiana, Iowa, Kansas, Illinois, Michigan, Minnesota, Missouri, Nebraska, North Dakota, Ohio, South Dakota, and Wisconsin.

The IICF, founded in California in 1994, seeks to help communities and enrich lives. The New York Division began operations in 2007 serving the Tri-state area and in 2011 expanded to include the Northeastern Region.

The foundation is funded and directed by insurance industry professionals representing a broad spectrum of the industry: reinsurers, insurance agents and brokers, property and casualty, health and life, and related businesses supporting the insurance industry.

Jacobson Group

Jacobson Group, the Chicago-based insurance executive search firm, concluded an affiliation with ejsSearch a London-headquartered firm focused on executive-level assignments in the United Kingdom, Europe and internationally.

According to the company’s announcement, ejsSearch, like Jacobson, is a boutique firm specializing in the insurance industry. The London-based firm also has a similar culture, client-centric approach and search methodology as that of Jacobson, the company’s announcement said.

Topics Michigan