Country Companies And Middlesex Set Up Reinsurance Alliance

The Illinois and Connecticut departments of insurance have approved an alliance between the Country Companies, Bloomington, IL, and Middlesex Mutual Assurance Company of Middletown, CT.

The alliance is a reinsurance pooling agreement, under which Country Mutual Insurance Co., the Country Companies' lead property and casualty company, now reinsures a majority of Middlesex Mutual's business.

"This alliance allows for a positive working relationship between Country Mutual and Middlesex Mutual," says Charles L. Jones, senior vice president and chief financial officer for the Country Companies. "It enables Middlesex to accelerate its growth in the northeast and allows us to share in that business."

The Country Companies operate in Illinois and nine states west of Illinois. Middlesex mainly writes automobile and homeowners insurance in Connecticut and Maine.

As a mutual company, Middlesex is owned by its policyholders, so the alliance creates no change in ownership. It does give the Country Companies majority control of Middlesex Mutual's board of directors. Middlesex Mutual's CEO James O. Matschulat, reports to Country Companies CEO Duane L. Miller, who is now president and chairman of the board of Middlesex.