Group1001 Acquires Insurance Group
- November 19, 2018
Group1001 Acquires Lackawanna Insurance Group
WILKES-BARRE, PA -- Group1001 announced it will acquire 100% of Lackawanna Casualty Company and its wholly-owned subsidiaries, Lackawanna American Insurance Company and Lackawanna National Insurance Company, together known as "Lackawanna Insurance Group."
Lackawanna is currently the 7th largest writer of workers' compensation in Pennsylvania. Group1001 plans to expand its Clear Spring Insurance brand of insurance companies by purchasing Lackawanna and leveraging all of its employees and technology.
"Lackawanna Insurance Group has grown from a company with written premium of approximately $8 million in the late 1990s to $120 million today. Our growth is a testament to our talented employees, key broker network relationships, and prudent approach to managing our business. I'm thrilled that all of our employees will be applying our sound business principles and excellent service in order to support continued growth and a nationwide expansion plan," remarked Kenneth Weaver, President and Chief Executive Officer of Lackawanna Insurance Group.
"We have owned and operated Lackawanna for more than 75 years, and because of Kenneth Weaver's fine leadership and the dedicated and exemplary work of the company's managers and staff, Lackawanna is rightly regarded as a premier workers' compensation insurance company with a well-deserved reputation for excellence. We are proud of our history and our people, thankful for all they have done and will continue to do in the months and years to come," stated Michelene Pagnotti, Chairman of the Boards of Pagnotti Enterprises, Inc. and Lackawanna Insurance Group.
Lackawanna Insurance Group will continue to operate out of its current Wilkes-Barre, Pennsylvania offices and all of its employees will remain in their current roles.
"This is a key transaction for our Clear Spring Insurance growth plans. We look forward to maintaining 100% of the Lackawanna staff and want to integrate their experience and technology," said Michael Camilleri, Chief Executive Officer of Clear Spring Property and Casualty Company.
Group1001 Chief Executive Officer Dan Towriss noted that the Lackawanna acquisition speaks to the growth and breadth of new offerings.
"This transaction represents a reaffirmation of Group1001's expansion and growth strategy. We will pursue opportunities to bring new products and services to a wider range of people and continue with our commitment to deploy capital at attractive return levels. This transaction will further diversify our risk portfolio and revenue sources," said Mr. Towriss.
While terms of the agreement are not publicly disclosed, Group1001 expects to close the transaction by the end of March 2019.
Merger & Acquisition Services, Inc. served as financial advisor and Drinker Biddle & Reath LLP provided legal services to Group 1001.
Keefe, Bruyette & Woods served as financial advisor and Cozen O'Connor provided legal services to Lackawanna Insurance Group.