Subject to regulatory approvals, American Family Insurance would finalize its USD616 million acquisition of Homesite Group Inc by the end of this year. This integration would allow for homeowners to purchase home insurance on their own rather than relying on third party expertise.
Homesite is an online provider of home insurance for lessors and homeowners for single family homes and/or condominiums. The company sells the policy coverages online or through call centers. It operates in 46 states while on the other hand, American Family Insurance operates in the traditional framework of using agents in nineteen states it operates.
According to American Family Insurance Chairman and CEO Jack Salzwedel through a statement, "This is about meeting customer preferences. Homesite allows us to serve a different segment of customers who want to use direct channels to handle their insurance needs."
This is the second purchase by AFI in less than a year of a direct property casualty insurer. The last purchase it did was in 2012 when it acquired Permanent General Cos of Nashvill, TN for USD239 million.
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