US-based property and casualty insurer State Farm Mutual Automobile Insurance Company has completed the purchase of non-standard auto insurer GAINSCO.
The $400m deal, which was first announced by the companies last September, was closed on 31 December 2020.
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GAINSCO, which focuses on the non-standard personal automobile insurance market, offers minimum-limits personal auto insurance.
It is the first insurance company to be taken over State Farm in its 98-year history.
GAINSCO will continue to operate as a separate company while State Farm agents will be offered the opportunity to distribute GAINSCO products in addition to State Farm products and services.
State Farm president, chairman, and CEO Michael Tipsord said previously that the deal positions both companies well for future growth.
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By GlobalDataTipsord said at the time: “Because of our competitive value, broad line of products, and exceptional customer service from our employees and 19,200 State Farm independent contractor agents, customers have made us the largest property and casualty insurer for several decades.
“We are excited for the opportunity State Farm agents will have to serve a market that has historically not been open to them. This will help us further toward our goal of serving more customers in more ways.”
Barclays Capital served as financial adviser and Mayer Brown served as legal counsel to State Farm. Sherman & Company was the financial adviser and Hunton Andrews Kurth was legal counsel for GAINSCO.
State Farm over 81 million auto, fire, life, health, and commercial policies and more than 2 million financial services account across the US.
The insurer has 19,200 agents and 59,000 employees in the country.
