New York-based National General Holdings Corp. will acquire certain assets of Opelousas-based Imperial Management Corp.
The sale includes its Imperial Fire & Casualty Insurance Co. and National Automotive Insurance Co., retail arm ABC Insurance Agencies, and its managing general agency RAC Insurance Partners.
The total purchase price includes $20 million in cash for the operating companies, some undisclosed Imperial invested assets and a recapitalization of the insurance subsidiaries.
National General Chairman and Chief Executive Officer Michael Karfunke said Imperial is a natural fit with National’s recent homeowners expansion efforts, helps diversify the company’s product portfolio and enhances its geographic footprint.
The sale is the second for Imperial in the last 13 months. In June 2013, Southport Lane, a New York-based equity firm acquired Imperial. Imperial had large underwriting losses in 2011 and 2012, mainly as the result of catastrophes and other weather-related events in Louisiana and Texas.
Imperial provides auto, homeowners and federal flood policies through four subsidiaries: Imperial Fire & Casualty Insurance Co., National Automotive Insurance Co., ABC Insurance Agencies and RAC Insurance Partners. In 2013, Imperial produced approximately $150 million of gross written premium through underwriting subsidiaries and about $45 million of managed premium written by ABC insurance agencies.
On June 18, National announced it expected to raise $55 million, before expenses, from the sale of 2.2 million shares of preferred stock.