Commerce To Acquire AAA Insurance Company

The Commerce Insurance Co. has entered into a definitive agreement to acquire the Automobile Club Insurance Co. (ACIC) from the American Automobile Association (AAA) and the California State Automobile Association Inter-Insurance Bureau. ACIC writes automobile and homeowners insurance solely through agents affiliated with AAA automobile clubs. The deal is reportedly worth $78.5 million.

For the nine months ended September 30, 1998, ACIC had total assets of $174 million and reported $73 million in direct written premium, with policies issued in 23 states. Completion of the acquisition is expected in the first quarter of 1999 and is subject to receipt of regulatory approvals as well as other customary closing conditions.

The Commerce Insurance Co., which is owned by The Commerce Group, Inc. and AAA Southern New England, is a leading writer of Massachusetts personal automobile insurance. Commerce intends to retain ACIC's management team and staff and continue to have its principal office in Columbus, OH.