High Point Auto Insurance Announces Approval of Key Business Transactions
High Point Acquires Automobile Insurance Business from National General
Red Bank, NJ - September 25, 2007: Today state regulators issued Consent Order C07-101 concerning the approval of a business consolidation transaction between High Point Property and Casualty Insurance Company and National General Insurance Company (a subsidiary of GMAC). The approved transaction calls for High Point to acquire the renewal rights to National General's New Jersey personal automobile insurance business.
National General writes about 10,000 policies (20,000 vehicles) representing about $20,000,000 in premium. Once the transaction is complete, High Point will insure approximately 200,000 policies and 375,000 cars. Business transactions of this nature are an integral part of High Point's long term growth strategy in New Jersey, and very similar to another acquisition the company made earlier this year with Teachers Auto Insurance Company of New Jersey.
National General wrote business through its relationships with national and regional affinity groups and associations. In addition to the business acquisition, High Point and National General have entered into a multi-year Joint Marketing Agreement whereby National General will provide expert marketing and solicitation services on behalf of High Point.
"We are delighted to welcome former National General customers in New Jersey to High Point as their policies renew," said Gerry Wilson, Chairman and CEO of High Point. "We have made this process very easy for the transitioning policyholders, and we look forward to offering them the great services High Point has developed for their convenience."
"This transaction and the ongoing business relationship we will have with National General fits into High Point's strategic vision of becoming a major player in the New Jersey group and affinity market," stated James Tignanelli, President of High Point.
In order to better accommodate the special coverage needs of several of the National General affinity programs, High Point made a series of product changes to augment its coverage offerings.
The transaction afforded National General the ability to align itself with an expert New Jersey company and maximize the value of its existing business.
"The investments we are making in systems and new product design associated with the rollout of our national product platform limits us in the short run from being able to grow profitably in states with unique regulatory environments, such as New Jersey. We are delighted to have found a strong local partner in High Point to assist us in serving our valued customers," stated Dan Pickens, Vice President of National General. "We are confident that the transition will be seamless for our customers, and benefit them in the long run," he added.
The transfer of policies will begin with December 16th expirations. High Point's vast array of benefits and product features -- from disappearing deductibles, new car replacement coverage, cash back program, and valet claim service -- will all be made available to these new customers.
High Point (www.highpointins.com), a New Jersey-based auto insurer, is committed to providing great rates and extraordinary customer service to New Jersey drivers. Insurance underwritten by High Point Preferred Insurance Company, High Point Safety and Insurance Company, and High Point Property and Casualty Insurance Company.