AmFam, Florida group planning merger
The boards of directors of Madison-based American Family Insurance and Florida-based The Main Street America Group are pursuing a merger of the two mutual holding companies, according to a release. The transaction will not involve any capital outlay. Upon completion of the merger, the combined equity is expected to be more than $9 billion.
The transaction still needs the approval of mutual policyholder-members of both companies, as well as state insurance regulators, and is expected to be complete by the end of 2018. Main Street America will operate as a stand-alone brand within the American Family Insurance group.
Given its potential to strengthen the financial and market position of American Family, one of Dane County's largest employers and most active philanthropic contributors, the merger already has at least one enthusiastic supporter in the Madison business community. “This is terrific news for American Family Insurance and their ability to reach new markets while supporting current policyholders,” says Greater Madison Chamber of Commerce President Zach Brandon in a prepared statement. “This is just the latest in a recent string of strategic investments and innovative acquisitions that have positioned the company for continued growth and success.
"We are excited about the deal, its expanded choices for small business owners, and the significant potential it represents for the future of one of this region’s true community leaders.”