Applied Underwriters Sets Completion of Its Acquisition of Alaska Timber Insurance Exchange as Anticipated Regulatory Approvals Advance
Accord reached in September 2020 will be realized by Applied following ATIE's conversion to a stock company and subsequent, anticipated regulatory approvals
OMAHA, Neb., Aug. 23, 2021 /PRNewswire/ -- Applied Underwriters anticipates completing the acquisition of Alaska Timber Insurance Exchange (ATIE) as soon as the fourth quarter of 2021 as ATIE, an Alaska-domiciled reciprocal exchange, organized to write non-assessable workers' compensation policies in that state, concludes its conversion from a reciprocal to a stock insurance company having received regulatory approval this past week. An accord reached between Applied and ATIE in September 2020 set the procedures now underway for the transaction, including North American Casualty Company's purchase of 41-year-old ATIE, rated 'A-' by AM Best and recognized for its stability and financial strength.
It is common practice for enterprises that were organized as a reciprocal, a mutual or other member benefit organization to become enabled to attract capital and to grow more readily in their field and in new areas of concentration through a conversion to a stock company. The conversion was approved by ATIE members on May 12, 2021 and has now received final regulatory approval by the Alaska Division of Insurance.
According to Jamie Sahara, President of Applied Underwriters, Applied's interest and attraction to ATIE was natural, as a US leader in the provision of workers' compensation coverage and diversified lines of coverage: "While ATIE was originally created to serve the Alaskan forest products industry for its particular needs in the non-assessable workers' compensation area, it has diversified successfully since 2002 such that its book of business is now 13% in that risk sector, while 87% is outside of logging and forestry related risks, mostly in complex underwriting areas in which we have great experience and depth."
"Moreover," Mr. Sahara continued, "the service standards and risk management protocols observed by ATIE are similar to those of Applied, as are its advanced loss control engineering, efficient operating platform and excellent client retention results. We believe that this will prove an advantage for Alaskan businesses and for each of the enterprises' clients. We look forward to completing this transaction and to gaining and serving a major share of the Alaskan market."
For further information contact: Ryan Gerding, Public Relations, at +1 (913) 602-8531 or at [email protected].
About Applied Underwriters (www.auw.com)
Applied Underwriters® is a global risk services firm that helps businesses and people manage uncertainty through its business services, insurance and reinsurance solutions. As a company, Applied Underwriters has been distinguished by its innovative approaches to client care and by its strong financial strength. Applied Underwriters operates widely throughout the US, UK, EU and Middle East. Its operational headquarters is located in Omaha, Nebraska.
About North American Casualty Company (www.nacasualty.com)
Ratings issuer AM Best has affirmed the Financial Strength Rating of 'A' (Excellent) and Long-Term Issuer Credit Ratings of 'a' of companies collectively referred to as North American Casualty Group (NAC). According to the ratings agency, "the ratings reflect NAC's balance sheet strength, which AM Best assesses as very strong, as well as its strong operating performance, limited business profile and appropriate enterprise risk management." The companies with the affirmed ratings are: California Insurance Company, Continental Indemnity Company, Illinois Insurance Company, and Pennsylvania Insurance Company, domiciled in New Mexico; Texas Insurance Company, domiciled in Texas; Oklahoma Property and Casualty Insurance Company, domiciled in Oklahoma; and Florida Casualty Insurance Company, domiciled in Florida.
About Alaska Timber Insurance Exchange
Ketchikan, Alaska-based ATIE was formed in 1980 by members of the Alaska Loggers Association, which is now the Alaska Forest Association. ATIE's membership includes a diverse group of employers located throughout Alaska. AM Best has issued a Financial Strength Rating of 'A-' (Excellent) and Issuer Credit Rating of 'a-' to Alaska Timber Insurance Exchange. The ratings reflect ATIE's sound capitalization, low cost operating platform and high member retention.
SOURCE Applied Underwriters
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