The deal has been signed to close the agreement for the expansion into the American public auto market.
Atlas Financial Holdings, Inc. has made insurance news with its announcement that it has now signed a definitive agreement to acquire Camelot Services, Inc., as well as its sole insurance subsidiary of Gateway.
The acquisition was announced to have been for around $23 million.
The final closure of the insurance news transaction is still subject to the typical conditions, such as the regulatory approval of Gateway Insurance Company’s change of control. It is expected that this will have been completed by the end of the first quarter of next year.
This insurance news will broaden Atlas’s commercial auto program to 40 states.
Gateway was first founded back in 1946, and has since grown to become a carrier within 46 different states, as well as in Washington D.C. It is a company based in St. Louis, Missouri and has a specific niche market in auto coverage for markets such as black car and sedan service owners and operators, and taxicabs.
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Approximately $10 million of the annual limo and taxi net written premiums are currently underwritten by Gateway. This most recent transaction with Atlas should expand that insurer’s programs significantly, adding the District of Columbia, California, Montana, Hawaii, North Dakota, South Dakota, Nebraska, West Virginia, and Washington to its list of states.
Atlas has stated in its insurance news that it will maintain the management of Gateway’s pubic auto coverage business by using its best practices. It also has the intention of making the transition quite seamless for both Gateway agents and its customers. The products at Gateway will still be distributed by Atlas under the current brand names, in order to place greater emphasis on the way that these products complement one another.
The CEO and president of Atlas, Scott D. Wollney released an insurance news statement about the acquisition that said that “This transaction will provide an immediate and long-term benefit to our company, and is consistent with our strategic plan to expand Atlas’ specialty commercial automobile lines-of-business through both organic growth and acquisitions.”