Brown & Brown subsidiary Arrowhead General Insurance has signed definitive agreement to acquire certain assets associated with Everest Security Insurance Company (ESIC), a wholly-owned primary insurance subsidiary of Everest Re Group, non-standard automobile business.
Under the terms of the accord, Everest Re will serve as exclusive underwriter for the combined non-standard automobile book of business for Arrowhead.
Effective from 01 April 2013, the collaboration in the non-standard automobile sector will provide operational efficiencies as well as growth opportunities for both the firms.
Everest primary insurance operations president Daryl Bradley said, "This alliance gives Everest immediate scale in the non-standard automobile sector and the ability to utilize Arrowhead's infrastructure and technology capabilities to expand our market share in this sector."
The strategic alliance will enable Everest Re to grow its non-standard automobile business from $30m to approximately $80m under the combined book.
Arrowhead chief executive officer Chris Walker said, "This venture will allow Everest to further tap into our infrastructure and technology capabilities as we work together to scale the program for growth."
