Orion Capital Corporation Completes Acquisition of Strickland
Orion Capital Corporation reports that its wholly-owned nonstandard auto subsidiary, Guaranty National, with headquarters in Englewood, Colorado, has completed the previously announced acquisition of the nonstandard private passenger automobile insurance business of North Carolina-based Strickland Insurance Group, Inc. (SIG) for $42.6 million in cash. SIG, a family-owned group of insurance-related companies, reported $99.4 million of private passenger automobile gross written premiums in 1997.
Included in the purchase are two insurance companies, a premium finance company, a claim adjusting firm and a general agency in Florida, along with other operating assets including SIG's 40,000 square-foot headquarters building in Goldsboro, North Carolina. SIG continues to own and operate Atlantic Casualty Insurance Company and Strickland Insurance Brokers and will focus on writing commercial insurance business and brokering for other companies, including Orion Specialty, another Orion Capital unit.
W. Marston Becker, Orion Capital Chairman and CEO, says, ``We are very pleased with our purchase of Strickland's excellent nonstandard automobile business. The addition of Strickland to Guaranty National, which follows our acquisition of South Carolina-based Unisun Insurance Company, effectively positions us to realize our goal of developing a national nonstandard automobile insurance franchise.''
Philip H. Urban, Guaranty National President and CEO, adds, ``Strickland's operation cements our foothold in the Southeast and provides us with a solid base that complements our already strong operations in the West. We look forward to joining forces with Strickland agents, customers and employees, and to doing business in our new communities. Guaranty National is a strong values-oriented company committed to continuing the tradition of excellence which has characterized the Strickland family operations.''
Guaranty National has been in business for over 40 years and operates through independent insurance agents. The company writes nonstandard private passenger automobile insurance through its five insurance company affiliates which carry A.M. Best ratings of ``A(Excellent)'' or ``A- (Excellent)''. With the acquisition of the Strickland business, Guaranty National now writes business in 35 states through approximately 10,000 independent agents. It is one of five operations comprising Orion Capital Corporation, a leader in the specialty property and casualty insurance business. Orion Capital's wholly-owned subsidiaries also include DPIC Companies, EBI Companies, Orion Specialty and Wm. H. McGee.