California-based national insurance distribution company Confie Seguros has reached a definitive agreement to purchase the retail distribution arm of Affirmative Insurance Holdings, a non-standard personal automobile insurance policies distributor and producer, in a $100m cash transaction.
Affirmative's Retail Agency Groupcomprises 195 retail offices located in Louisiana, Alabama, Texas, Illinois, Indiana, Missouri, Kansas, South Carolina and Wisconsin and two premium finance companies.
The transaction will increase Confie's offices to nearly 530 branches, while boosting its geographic diversification and building a platform for the company in the Midwest and Southeast US that will allow for additional strategic acquisitions.
Confie Seguros CEO Joe Waked said, "The addition of these key retail locations and their premium volume significantly increases our size and geographic reach and transforms us into the largest non-captive distributor of non-standard insurance in the U.S."
Affirmative Insurance acting CEO Mike McClure commented, "The transaction will also allow us to focus on our insurance production business, which has significantly improved from both a revenue and profitability perspective."
In August this year, the company acquired a privately owned independent insurance agency Economy Insurance Mart of Spring Hill, for an undisclosed sum, to boost its existing footprint in Florida.
In July 2013, the US firm purchased CW Baker Insurance Agency and Lewiston Insurance Agency, in a bid to boost standard and preferred personal lines and small commercial distribution network in the region.
Instituted in 2008, Confie Seguros primarily concentrates on the insurance needs of Hispanic consumers and has more than $200m in annual revenue with over 300 retail locations.
