K2 Insurance Services Acquires American Reliable's Specialty Property Business

Rhea-AI Summary

Global Indemnity Group (NASDAQ:GBLI) announced the acquisition of its American Reliable specialty residential property business by K2 Insurance Services. This includes manufactured home and dwelling lines, with underwriter support from Homesite Group, a subsidiary of American Family Insurance. The transition aims to be seamless for agents and policyholders. Reiner Mauer, GBLI's COO, emphasized a focus on core commercial lines for sustainable profitability. K2 manages over $1 billion in premium, enhancing its market presence.

Positive

• K2 acquires American Reliable, enhancing market capabilities.
• Transition aims for seamless integration, maintaining client relationships.
• Focus on core small and middle-market commercial lines supports long-term profitability.

Negative

• None.

BALA CYNWYD, PA / ACCESSWIRE / November 2, 2021 / Global Indemnity Group, LLC (NASDAQ:GBLI) ("GBLI"), announced today that K2 Insurance Services, LLC ("K2") has acquired its American Reliable specialty residential property business, including its manufactured home and dwelling lines. K2 is committed to seamlessly transfer and renew the American Reliable specialty residential property business, which will be underwritten by Homesite Group, a subsidiary of American Family Mutual Insurance Company, S.I. (American Family Insurance).

K2 is a leading specialty MGA with more than 20 active programs across various niches. They currently manage over $1 billion in premium, including $150 million in manufactured home premium. American Family Insurance has been providing insurance services and products for more than 90 years and has a Financial Strength Rating of ‘A' (Excellent) from AM Best.

Reiner R. Mauer, GBLI's chief operating officer, said, "This transaction supports GBLI's strategy to focus on core small and middle-market commercial lines that drive long term consistent and sustainable profitability. We expect this transition will be seamless for our agents and policyholders. We encourage our agents to partner with K2, a world-class MGA, and are pleased that our policyholders will be with a carrier that has the reputation and financial strength of American Family Insurance."

Bob Kimmel, chief executive officer of K2 Insurance Services, said, "It was great to work with the GBLI team on closing this transaction. We look forward to partnering with the agents to place this business with our great underwriting partner, Homesite."

About Global Indemnity Group, LLC and its subsidiaries

Global Indemnity Group, LLC (NASDAQ:GBLI), through its several direct and indirect wholly owned subsidiary insurance companies, provides both admitted and non-admitted specialty property and specialty casualty insurance coverages and individual policyholder coverages in the United States, as well as reinsurance worldwide.

About K2 Insurance Services, LLC and its subsidiaries

K2 Insurance Services (K2) is an insurance services holding company, which owns and controls a diverse set of specialty program administrators. Through its MGAs, K2 markets, underwrites, and services over $1 billion annually in niche commercial and personal insurance premiums. From workers' compensation for high hazard exposures such as commercial transportation to personal lines coverage for manufactured homes, K2 helps insure clients across a diverse array of risks and industries. K2 is headquartered in San Diego, California and is a privately held company.

Forward-Looking Information

The forward-looking statements contained in this press release ¹ do not address a number of risks and uncertainties including, COVID-19. Investors are cautioned that Global Indemnity's actual results may be materially different from the estimates expressed in, or implied, or projected by, the forward-looking statements. These statements are based on estimates and information available to us at the time of this press release. All forward-looking statements in this press release are based on information available to Global Indemnity as of the date hereof. Please see Global Indemnity's filings with the Securities and Exchange Commission for a discussion of risks and uncertainties which could impact the company and for a more detailed explication regarding forward-looking statements. Global Indemnity does not assume any obligation to update the forward-looking statements provided to reflect events that occur or circumstances that exist after the date on which they were made.

[1] Disseminated pursuant to the "safe harbor" provisions of Section 21E of the Security Exchange Act of 1934.

CONTACT:

Media - GBLI
Stephen W. Ries
Head of Investor Relations
(610) 668-3270
sries@gbli.com

Media - K2
Matt LuBien
Chief Operating Officer
(858) 450-4036
mlubien@k2ins.com

SOURCE: Global Indemnity Group, LLC

View source version on accesswire.com:
https://www.accesswire.com/670670/K2-Insurance-Services-Acquires-American-Reliables-Specialty-Property-Business

FAQ

What did K2 Insurance Services acquire from Global Indemnity Group?

K2 Insurance Services acquired the American Reliable specialty residential property business, including manufactured home and dwelling lines.

How will the acquisition affect Global Indemnity Group's operations?

The acquisition allows Global Indemnity Group to focus on core small and middle-market commercial lines for sustainable profitability.

What is the role of Homesite Group in the acquisition?

Homesite Group will underwrite the American Reliable specialty residential property business after its acquisition by K2.

What is K2's market presence post-acquisition?

K2 Insurance Services manages over $1 billion in premium across various insurance programs, strengthening its market position.