Mergers & Acquisitions

Record valuations and the looming threat of a sizable increase to capital gains tax have been among the primary factors leading agency owners to sell.

Lemonade will acquire auto insurer Metromile in an all-stock transaction for just over $200 million net of cash.

An aging group of owners looking at all-time high valuations and expecting future tax increases has spurred a jump in increased merger activity.

Hagerty will join a growing list of other insurance companies that recently went public via special purpose acquisition company (SPAC), including Hippo and Lemonade.

The firms have agreed to terminate their $30 billion deal and end litigation with the U.S. Department of Justice.

The deal is anticipated to make Liberty Mutual the second largest independent agency carrier in the U.S., adding $2.3 billion in premium and State Auto’s network of approximately 3,400 independent agencies.

The acquisition will allow SafeAuto to grow its platform in the non-standard space. Additionally, Progressive finalized the acquisition of transportation insurer Protective Insurance Corp. ahead of schedule.

Proposals by the Biden administration may cause agency owners interested in selling their business in the next five years to accelerate their timeline to 2021.

The deal sees Farmers assume responsibility for MetLife’s property-casualty business, expanding its reach and strengthening its position as a leading personal lines carrier.

The acquisition allows Progressive to add products for larger fleets and brings expertise in workers comp coverage for the transportation industry, which are new areas of business for Progressive.