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Travelers (TRV) to Acquire Plymouth Rock's InsuraMatch

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The Travelers Companies, Inc. TRV is set to acquire InsuraMatch LLC from the Plymouth Rock Group of Companies. Pending regulatory conditions, the deal is estimated to be completed in the first quarter of 2021. The financial terms of the deal were kept under wraps. Shares of Travelers gained 0.8% in Friday's trading.

InsuraMatch, founded in 2014, is part of Boston-based The Plymouth Rock Group of Companies, which writes or manages over $1 billion in auto and homeowners’ insurance.

InsuraMatch is a national, independent insurance agency. It remains focused on using technology to create a new, better insurance shopping experience. It works with over 30 leading insurance companies to provide a wide array of insurance products, including coverage for auto, home, umbrella, flood, motorcycle, renters, toys and more. In 2019, InsuraMatch produced nearly $32 million in premiums.

The transaction between InsuraMatch and Travelers is a strategic fit as it will enable the acquirer to leverage the scalable technology of InsuraMatch and meet the needs of their customers and serve them better. The agents and brokers of the acquirer will be furnished with strategic capabilities in a digital environment.

The acquisition will provide both the companies with growth opportunities besides enhancing customer experience.

This Zacks Rank #3 (Hold) property and casualty insurer offers a wide range of commercial and personal property and casualty insurance products and services to businesses, government units, associations and individuals. This acquisition is expected to boost its Personal Insurance business, which writes a broad range of property and casualty insurance covering individuals’ personal risks, primarily in the United States, as well as in Canada. Revenues in Personal Insurance business increased 3.2% in the first nine months of 2020 due to higher new business premiums and strong retention rates.

In 2017, Travelers acquired Simply Business from Aquiline Capital Partners LLC for an enterprise value of approximately $490 million in a bid to make the small commercial insurance transaction easier, faster and more efficient.

Shares of this insurer have gained 0.5% in the past year, outperforming the industry’s decline of 2.9%. Nonetheless, the company’s policy to ramp up its growth profile and capital position should drive shares higher.

There have been a host of acquisitions in the insurance space of late, given the significant capital available.  Arthur J. Gallagher & Co. AJG recently acquired North Star Insurance Services and North Star Marine Insurance Services to boost its marine insurance business. Assurant AIZ acquired HYLA Mobile in an effort to consolidate its position as a leader in trade-in and upgrade programs. Kemper Corporation KMPR agreed to acquire American Access Casualty Company and its related captive insurance agency, Newins Insurance Agency Holdings, LLC, and its subsidiaries to strengthen the acquirer’s Specialty Auto segment.

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The Travelers Companies, Inc. (TRV) : Free Stock Analysis Report
 
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