Austin Mutual Insurance to Become Affiliate of Main Street America Group

Super-regional property/casualty insurance carrier The Main Street America Group announced that Minnesota-based Austin Mutual Insurance Co. will affiliate with Main Street America.

The affiliation agreement, which has been approved by the boards of directors of both companies, is subject to regulatory approval from the Minnesota insurance commissioner’s office as well as policyholders of Austin Mutual. The closing is projected to occur by midyear 2012. Financial terms were not disclosed.

Austin Mutual, founded in 1896, will maintain its brand name and continue to sell its products via its network of independent agents in nine Midwest and Western states.

Under terms of the affiliation, Austin Mutual chairman, president and chief executive officer Jeffrey Kusch will continue to oversee the company’s daily operations out of its Maple Grove, Minn., headquarters and report to Van Berkel.

There will also be a management and services agreement in place between the two companies and Main Street America will provide Austin Mutual with quota share reinsurance.

Over the past four years, Main Street America has established a strong Midwest presence via an acquisition of Michigan-domiciled Great Lakes Casualty Insurance Co. in 2008, and two other affiliations: Indiana-domiciled Grain Dealers Mutual Insurance Co. in 2009 and Minnesota-domiciled Spring Valley Mutual Insurance Co. in 2011.

Source: Main Street America Group