Frankenmuth Financial Group Announces Merger with Patriot Mutual Insurance Company
Michigan-based property and casualty insurer, Frankenmuth Mutual Insurance Company, part of the Frankenmuth Financial Group, announced it has entered into a merger agreement with Patriot Mutual Insurance Company, a Maine-based property and casualty insurer.
The agreement reached between the parties describes a two-step transaction. Initially, Patriot Mutual will enter into a mutual holding company reorganization, become a wholly owned stock company of the mutual holding company, and change its name to Patriot Insurance Company. Secondly, the mutual holding company will merge into Frankenmuth, with Frankenmuth as the surviving company. At the conclusion of these transactions, Patriot Insurance Company will be a Maine domiciled wholly owned subsidiary of Frankenmuth. Completion of these transactions is subject to the customary regulatory and member approvals.
Gerald L. Stanton, Frankenmuth’s Chairman of the Board and Chief Executive Officer, stated, “The merger with Patriot provides Frankenmuth a great opportunity to expand in the Northeast through an existing company having both local market expertise and strong relationships with its professional independent agency force. Frankenmuth plans to couple Patriot’s strengths with its financial strength, A+ (Superior) rating from A.M. Best, and industry recognized state-of-the-art technological capabilities to enable Patriot to grow its existing personal lines business and to efficiently and effectively execute a commercial lines strategy offering products that meet the needs of policyholders. As a result, Patriot will be a more valuable insurance carrier for the region’s consumers and professional independent agents. The merger is also intended to improve Patriot’s A.M. Best rating, with Frankenmuth’s A.M. Best rating of A+ (Superior) being unaffected.”
About Frankenmuth
Frankenmuth Mutual Insurance Company, founded in 1868, is a Michigan-domiciled property and casualty insurance company licensed in 47 states. Frankenmuth writes both personal and commercial lines in ten states through 450 professional independent agencies. As of and for the year ended December 31, 2005, Frankenmuth’s policyholders’ surplus and written premiums approximated $286 million and $363 million, respectively.
About Patriot
Patriot Mutual Insurance Company was incorporated as Blue Alliance Mutual Insurance Company in 1966. Today, Patriot is licensed and writes primarily personal lines business in Maine, New Hampshire and Vermont through 100 professional independent agencies. As of and for the year ended December 31, 2005, Patriot’s policyholders’ surplus and written premiums approximated $19 million, and $37 million, respectively.