Addison, Texas-based Affirmative Insurance Holdings Inc. announced the completion of two previously disclosed acquisitions.
The first acquisition consists of the assets of the retail agency and franchise operations of 21st Century Holding Company and the second acquisition consists of the assets of BW Insurance Agency Inc.
The 21st Century Holding Company transaction includes the assets of 24 company-owned retail stores and franchise operations consisting of 42 franchise locations in four designated market areas in Florida, operating under the FED USA brand. The retail agency and franchise operations produce approximately $50 million annually of non-standard automobile insurance premiums for multiple insurance companies.
The retail stores and franchise operations will continue to operate under the FED USA brand and produce business for the insurance subsidiaries of 21st Century Holding Company, as well as for other insurance companies not affiliated with 21st Century Holding Company. Affirmative paid 21st Century Holding Company $7 million in cash and will pay up to an additional $2.5 million subject to certain performance criteria being met.
In the BW Insurance Agency transaction, Affirmative acquired the assets of 10 retail stores in Texas, nine in the Houston area and one in the Beaumont area. These stores produce approximately $5 million of non-standard automobile insurance premiums for multiple insurance companies annually, and will be converted to the A-Affordable brand name and produce business under A-Affordable’s multiple company distribution model.
Affirmative paid BW Insurance Agency $750,000 in cash and will pay up to an additional $750,000 subject to certain performance criteria being met.
Affirmative Insurance Holdings Inc. is a producer and provider of non-standard automobile insurance policies to individual consumers in highly targeted geographic markets. Affirmative currently offers products and services in 11 states, including Texas, Illinois, California and Florida.
Topics Mergers & Acquisitions Texas
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