*Direct Insurance Agencies In Merger Agreement
Direct Response Corp., White Plains, NY, which owns several automobile insurance direct marketing firms, yesterday said it agreed to acquire Connecticut Life & Casualty Co., Meriden, CT, a direct marketer of auto and homeowners insurance. The terms of the acquisition were not disclosed.DRC, parent of Response Insurance, said it would seek to market Connecticut Life & Casualty in the states where DRC offers insurance, including California, New York, Florida, Illinois, Maryland and Georgia. CL&C will continue to operate under its current name, and Robert Weiss, chairman/CEO, will remain in that capacity.
CL&C, which has more than $13 million in in-force policies, said its growth had been limited by its lack of resources and capital. DRC said it recently received a $97 million investment from Morgan Stanley Dean Witter. It also said it is seeking to expand its direct marketing model nationally.
Both parties signed a letter of intent. The acquisition is subject to approval by the Connecticut Insurance Department and the completion of due diligence.
