Madison, Wisc.-based American Family Insurance has agreed to acquire Boston-based Homesite Insurance for $616 million, the companies announced yesterday afternoon.
American Family says that its goal is to serve a different customer segment with the buy: Homesite is a direct writer of homeowners, renters and condominium insurance, while American Family is predominantly agent-distributed. The company bought direct auto insurance provider Permanent Genera l late last year with similar objectives.
“This is about meeting customer preferences,” American Family chairman and CEO Jack Salzwedel said in a statement. “At American Family, we already have exceptional agents for customers who value the expertise and close personal attention our agents provide. Our agents are American Family’s foundation, and they will continue to be … Homesite allows us to serve a different segment of customers who want to use direct channels to handle their insurance needs. We want to provide options for all customer preferences.”
Salzwedel also tweeted about the acquisition: