By CBJ News Staff
United Fire & Casualty (UFG), strategically refocusing on its commercial insurance lines, has reached a deal for its independent insurance agents to transfer its personal lines policies to Nationwide Mutual Insurance Co.
A renewal rights agreement with Nationwide to transfer policies, announced Monday, remains subject to regulatory approval. Under that agreement, UFG’s network of independent insurance agents will have the opportunity to transfer their policies to Nationwide beginning in the third quarter of this year.
Nationwide will offer contracts to UFG personal lines agents across the country, with the exception of agents in Florida and Louisiana. UFG personal lines policyholders will be provided with replacement policies by Nationwide at the time of renewal to ensure no lapse in coverage, and the policies will have nearly identical or improved coverage and pricing.
In a news release, UFG Insurance, the corporate parent of United Fire & Casualty, said the change is meant to focus on the success of its commercial insurance lines, which makes up 94% of its total business, and was not a result of market conditions from the COVID-19 pandemic.
“UFG’s decision to exit the personal lines market was purely a strategic one as we concentrate our efforts on the growth and profitability of our core commercial lines business, including commercial insurance, excess and surplus lines insurance and surety bonds,” explained UFG President and CEO Randy Ramlo. “We are pleased to be able to partner with Nationwide in this decision – a leading insurer in the personal lines market that shares our commitment to serving independent insurance agents and their customers. We look forward to working with Nationwide in the months ahead to ensure a seamless transfer process and a successful outcome for all those involved.”
The deal follows the March 2018 transfer of its United Life Insurance Co. to Kuvare US Holdings Inc. in a $280 million deal. A decision related to UFG’s personal lines policies in Florida and Louisiana will be made at a later date. CBJ