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Hartville Group to Acquire Insurance Company
NORTH CANTON, Ohio -- Hartville Group Inc., a nationwide provider of pet health insurance, has finalized the definitive purchase agreement to acquire a property and casualty insurance company.The name of the insurance company and terms of the transaction were not disclosed but will be revealed in a Securities and Exchange Commission Form 8-K that will be filed immediately following the closing.The purchase is subject to customary closing conditions and approval of Hartville acquiring control by the Department of Insurance of the insurance company's state of domicile. Upon satisfaction of the closing conditions, regulatory approval and consummation of the acquisition, Hartville expects to begin writing pet insurance policies through the newly acquired wholly-owned insurance company. Based on communication with the domiciliary state's Department of Insurance, Hartville believes the transaction will receive regulatory approval and the transaction will be consummated in the second quarter of this year."This transaction will enable Hartville Group to place its own policies, which we anticipate will result in an immediate savings of 5% or more of the dollar premium cost for each policy sold," says Russell Smith III, chairman and chief executive officer of Hartville Group. "The company is finalizing its 2004 reinsurance treaty and slips have sent to the partnering reinsurer wherein Hartville Insurance Co. looks to assume up to 80% of the ceded risk going forward from June 1, 2004. This is a tremendous step for the company in that upon consummation of the acquisition, Hartville will have fulfilled its strategic objective of having the capability to internally manage each aspect of its pet insurance program. Looking ahead, Hartville can now focus its resources on growing the business of selling pet insurance policies through the present grocery and pet specialty superstore electronic check-out messaging network." "