State Farm enters high-risk arena with its first-ever insurance acquisition
Curious to here everyones thoughts
Curious to here everyones thoughts
Statefarm Buys Gainsco ($400m)
- Thread starter MikeyR
- Start date
- 5,285
I think you posted a link to an article we have to pay to sign up for.
Here is a link to an article everyone can read. State Farm to buy auto insurance company GAINSCO | CIProud.com
I can see State Farm using their paper to write high risk auto, because currently they have to turn that business away. I don't see State Farm writing minimum limits in any sort of volume, though. One of the ways that a high risk auto insurer stays profitable, among other things, is by writing minimum limits, so they don't have to pay out as much at a loss. Plus minimum limits are often attractive to people with people with poor records and higher rates. That part, the minimum limits, I don't really see fitting with State Farm's style.
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- Thread starter
- #3
I am far from an expert on either company, or the P/C industry -- but I do keep a very good finger on the pulse of the industry as a whole. What I found interesting about this at first glance was that this was a first -- State Farm never acquired (purchase) an insurance company. Sure, small, vertical acquisition, stock sale, and my only experience or knowledge of Gainsco is from the Southeast and South-Mid US, minimum limit, personal auto, etc.
A friend of mine at Barclays headed up the team that advised State Farm. Seemed pretty typical, but who knows, LOL. So, what, cross selling here? OK. Not sure what else will be substantial.
A friend of mine at Barclays headed up the team that advised State Farm. Seemed pretty typical, but who knows, LOL. So, what, cross selling here? OK. Not sure what else will be substantial.
