The insurers have created a merger plan and have announced their intention to move forward as one.
The Harford Mutual Insurance Group (HMIG) and ClearPath Mutual Insurance companies have announced that they have agreed to a plan to merge. The commercial property and casualty insurer and the monoline workers’ compensation carrier will be merging.
The insurers stated that this was an opportunity that allowed them to align their strategic goals.
“We are constantly seeking opportunities that complement our strategic goals and provide our policyholders and independent agents with the products and services they need,” said HMIG president and CEO Steve Linkous in a statement about the insurance companies’ merger intentions. “ClearPath Mutual perfectly complements our product line offering while expediting our plans for geographic diversification. We look forward to welcoming ClearPath’s employees, agents, and policyholders into HMIG as we fulfill our mutual vision of being a carrier of choice.”
ClearPath Mutual, which had been KESA of Kentucky for more than forty decades, was formed in 2018 and provides monoline workers’ compensation coverage in Kentucky, Indiana, Georgia, Tennessee and West Virginia. By way of an independent agency strategy and relationships with local associations and chambers of commerce, it has achieved steady growth with $52 million in direct written premiums across almost 7,000 policies.
The insurance companies will be working together to proceed with their operations together.
ClearPath’s intentions are to continue their operations under their current name. The existing Louisville, Kentucky office will remain and will act as the Midwest Regional Office for HMIG.
“Since 2018, the mission of the ClearPath board and leadership has been to chart a path to sustainable success. We are financially strong and committed to the communities we serve,” said ClearPath Mutual president and CEO Jeff Borkowski. “This merger into Harford Mutual Insurance Group will provide us with the scalable infrastructure and regional reach to meet our strategic goals of providing community first workers’ compensation coverage to our policyholders.”
According to the insurance companies, the merger is slated to close following the successful completion of customary reviews and approvals processes. No specific date was announced by which the insurers expect that these processes will have been completed.