WILKES-BARRE, Pa., Nov. 15, 2018 /PRNewswire/ -- Group1001 announced today it will acquire 100% of Lackawanna Casualty Company and its wholly-owned subsidiaries, Lackawanna American Insurance Company and Lackawanna National Insurance Company, together known as "Lackawanna Insurance Group."
Lackawanna is currently the 7th largest writer of workers' compensation in Pennsylvania. Group1001 plans to expand its Clear Spring Insurance brand of insurance companies by purchasing Lackawanna and leveraging all of its employees and technology.
"Lackawanna Insurance Group has grown from a company with written premium of approximately $8 million in the late 1990s to $120 million today. Our growth is a testament to our talented employees, key broker network relationships, and prudent approach to managing our business. I'm thrilled that all of our employees will be applying our sound business principles and excellent service in order to support continued growth and a nationwide expansion plan," remarked Kenneth Weaver, President and Chief Executive Officer of Lackawanna Insurance Group.
"We have owned and operated Lackawanna for more than 75 years, and because of Kenneth Weaver's fine leadership and the dedicated and exemplary work of the company's managers and staff, Lackawanna is rightly regarded as a premier workers' compensation insurance company with a well-deserved reputation for excellence. We are proud of our history and our people, thankful for all they have done and will continue to do in the months and years to come," stated Michelene Pagnotti, Chairman of the Boards of Pagnotti Enterprises, Inc. and Lackawanna Insurance Group.
Lackawanna Insurance Group will continue to operate out of its current Wilkes-Barre, Pennsylvania offices and all of its employees will remain in their current roles.
"This is a key transaction for our Clear Spring Insurance growth plans. We look forward to maintaining 100% of the Lackawanna staff and want to integrate their experience and technology," said Michael Camilleri, Chief Executive Officer of Clear Spring Property and Casualty Company.
Group1001 Chief Executive Officer Dan Towriss noted that the Lackawanna acquisition speaks to the growth and breadth of new offerings.
"This transaction represents a reaffirmation of Group1001's expansion and growth strategy. We will pursue opportunities to bring new products and services to a wider range of people and continue with our commitment to deploy capital at attractive return levels. This transaction will further diversify our risk portfolio and revenue sources," said Mr. Towriss.
While terms of the agreement are not publicly disclosed, Group1001 expects to close the transaction by the end of March 2019.
Merger & Acquisition Services, Inc. served as financial advisor and Drinker Biddle & Reath LLP provided legal services to Group 1001.
Keefe, Bruyette & Woods served as financial advisor and Cozen O'Connor provided legal services to Lackawanna Insurance Group.
About Lackawanna Insurance Group
Lackawanna Insurance Group is a Pennsylvania workers' compensation specialist with assets of more than $300 million and statutory surplus of $100 million as of September 30, 2018. Lackawanna Insurance Group has been writing business exclusively in the State of Pennsylvania for over 75 years. Currently the 7th largest writer of workers' compensation in the State, Lackawanna Insurance Group is Rated A (Excellent) by A.M. Best.
Headquartered in Wilkes-Barre, PA, Lackawanna maintains a local presence across the Commonwealth.
For more information about Lackawanna Insurance Group, Please visit Ligins.com
About Clear Spring Insurance
With offices based out of Boca Raton, FL, Clear Spring Property and Casualty Company is an insurance company in the Group1001 family of companies that is focused on workers' compensation and property & casualty.
About Group 1001
Group One Thousand One, LLC ("Group1001") is an insurance holding company in the United States, with current combined assets under management of approximately $37 billion as of December 31, 2017, and a mission to make insurance and retirement products more useful, intuitive, and accessible so everyone can get the most value from their money.
For more information about Group1001, please visit Group1001.com.