Investors including holding company and Alleghany Corporation and LBO firm Metalmark Capital have agreed to sell direct homeowners insurer Homesite Group to American Family Insurance for an anticipated $616m.
The acquisition of Homesite, based in Boston and a leading direct writer of homeowners, renters and condominium insurance, will be finalised by the end of the year.
The purchase is the second time in less than a year that American Family has acquired a direct property-casualty insurance company. American Family purchased non-standard auto insurer Permanent General Companies at the end of 2012.
Homesite is the 24th largest homeowners insurer in the US, with 2012 written premium of $548m.
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