Response Insurance Buys 2 DTC Insurers
Response Insurance Group purchased two direct-to-consumer insurance companies from Great American Insurance Co., Great American parent American Financial Group said last week.The companies -- Worldwide Insurance and its subsidiary, Worldwide Direct Auto Insurance -- represented 70 percent of the direct personal auto insurance premiums written by Cincinnati-based American Financial Group. Direct auto insurance premiums at AFG totaled $108 million last year.
Response paid $32.2 million in cash, plus another $17 million. Response also will pay commissions to Great American for direct policies acquired as part of the purchase that are renewed.
Response, Meriden, CT, was founded in 1996. It includes Warner Insurance Co., Teachers' Insurance Plan and several other DTC insurance companies, all of which are subsidiaries of Direct Response Corp.
