Confie Seguros Continues Expansion With Acquisition Of Cost-U-Less Insurance

NEW YORK, Oct. 4 /PRNewswire/ -- Confie Seguros, a rapidly growing provider of auto insurance with an emphasis on serving Hispanic consumers, today announced that it has acquired Cost-U-Less Insurance, a leading California provider of non-standard auto insurance with offices located primarily in the northern and central parts of the state.

Based in Sacramento, Cost-U-Less Insurance  has been providing California drivers with high-quality, low cost auto insurance options from top-rated companies since 1989. The company has more than 80 office locations throughout California and writes over $125 million in premiums annually. With this acquisition, Confie Seguros will broaden its presence to over 150 retail centers throughout the state.

Norm Hudson, President of Cost-U-Less, will remain in that position and continue to oversee the company.

John Klaeb, CEO of Freeway Insurance, a California subsidiary of Confie Seguros, said, "Our two companies have highly complementary footprints in California. We are very pleased to be joining with Cost-U-Less to build full coverage capabilities in the state.  We are excited that Norm Hudson has joined our team. He has extensive knowledge of the insurance industry and the California market. Together we will continue to implement our strategy of developing a highly focused insurance provider serving the needs of the rapidly growing Hispanic population."

John Addeo, CEO of Confie Seguros, said, "Cost-U-Less is a leading provider of auto insurance in central and northern California, and with only a small segment of its business focused on the Hispanic market, we see significant opportunities.  There is very little overlap between our existing locations in California and Cost-U-Less provides us with greater coverage in an important market as we continue to build our business organically and through carefully targeted acquisitions."

Messrs. Addeo and Klaeb added that the companies have identified opportunities to leverage marketing strategies and expand with new retail locations. Confie Seguros remains on track to become the leading national insurance distribution company primarily focused on the insurance needs of the Hispanic consumer. The company has grown its revenues to $120 million since its formation three years ago.

About Confie Seguros

Confie Seguros is a leading national insurance distribution company primarily focused on the insurance needs of the Hispanic consumer. The experienced Confie Seguros management team, led by seasoned insurance veteran CEO John Addeo, continues to build its portfolio of regional auto insurance brokerages, targeting growth and revenues exceeding $250 million. The company has leading market positions in California, Arizona, Texas, and Washington and expects to continue its expansion in those states as well as in Florida, Georgia, and Nevada in addition to other states.  

About Genstar Capital, LLC

Genstar Capital (www.gencap.com) is a leading private equity firm that for over 20 years has been actively investing in high quality middle-market companies and building value in those businesses by utilizing the expertise of its operating partners.  Based in San Francisco, Genstar works in partnership with its management teams and its network of operating partners and strategic advisors to transform its portfolio companies into industry-leading businesses. Genstar has more than $3 billion of committed capital under management and targets investments focused on selected sectors within the life science, healthcare services, software and software services, financial services, and industrial technology industries.

Michelman & Robinson provided legal counsel for Confie Seguros.  

SOURCE Confie Seguros