Guardian buys US insurer for pounds 19m
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.Guardian is spending pounds 19m to buy a small US motor insurance specialist, the Indianapolis-based National Corporation.
National Corporation writes non- standard motor business in 13 states. The purchase increases from 10 to 17 the number of states in which Guardian operates in this market.
National Corporation and nine associated agencies manage the insurance business of the National Insurance Association, an insurance exchange. Last year, the National group made a pre-tax profit of pounds 3.6m (including an underwriting profit of pounds 2.4m) on gross premium income of pounds 35m.
Guardian said there was little territorial overlap with its existing US subsidiaries, Globe American and American Ambassador, purchased last December. The UK insurer, formerly Guardian Royal Exchange, will pay an initial pounds 13m, with pounds 3m to follow on the first two anniversaries of the deal's completion.
Jim McDonough, Guardian's international director, said: 'This purchase is part of Guardian's strategy to invest in selected businesses in key areas of the world, one of which is the USA.
'The synergy between the National group and our existing operations should bring powerful benefits to many parts of the business.'
The deal requires the approval of US regulators but is expected to be finalised by the end of May.
Guardian's shares fell 5p to close at 190p yesterday.
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments