In its second such acquisition in less than a year, Madison-based American Family Insurance announced it will purchase a direct property-casualty insurer. American Family will spend about $616 million to acquire Homesite Group, Inc. of Boston, a buy-direct homeowners insurer, pending regulatory approval.
Homesite employs 700 people and sells renter, condo, and homeowners insurance directly over the Internet or through call centers, rather than through agents. Besides Boston, it has offices in Ohio and Arizona and employs other staff throughout the country. For American Family, the acquisition opens a new market of potential customers and expands its reach significantly because Homesite operates in 46 states, compared to the 19 states American Family currently serves.
The companies will continue to operate as separate entities, with their own leadership teams, and the acquisition should not have any impact on operations or jobs at either company.
Late last year, American Family purchased high-risk direct auto insurer Permanent General Cos. of Tennessee for $239 million.
