MEMIC acquire's Granite Manufacturers Mutual Insurance Company

Workers' compensation insurer The MEMIC Group of Portland, Maine, announced today it has acquired Vermont-based insurer Granite Manufacturers Mutual Insurance Company. MEMIC also said in a statement that it plans to expand its operations in Pennsylvania and New Jersey in 2012.
MEMIC purchased Granite Manufacturers Mutual Insurance Company of Barre for an undisclosed sum and will rename it MEMIC Casualty Company. The company will operate under the parent brand MEMIC as part of The MEMIC Group. According to company president and CEO John T. Leonard, the acquisition will give the group another vehicle to continue its impressive growth in the commercial workers' compensation insurance market.
According to Michael Bourque, Senior Vice President, External Affairs, Granite Manufacturers Mutual was inactive and under the control of the Vermont Department of Insurance. As for how the Vermont entity will operate going forward, he said in an email: "We are still forming our business plan for this company. We certainly plan to continue to write workers' compensation in Vermont, as we have for the last 10 years through MEMIC Indemnity Company (which is headquartered in Manchester, NH). At this point, we'll be looking to see where our growth happens and that will dictate where we need to hire."
"The addition of MEMIC Casualty will help us implement our growth strategies in the Eastern US," Leonard said. "This acquisition is a great opportunity, and gives our agents even more options when they look to place business with MEMIC. We're excited about the prospects for this new subsidiary."
In addition, The MEMIC Group announced that it will open offices in New Jersey and Pennsylvania in 2012. While the company remains the dominant market share holder in Maine through its mutual company, Maine Employers' Mutual Insurance Company, it has also executed a careful growth strategy across the Northeast over the last few years. In 2010, The MEMIC Group was the fifth largest underwriter of workers' compensation business in New England and was among the fastest growing in New York. Growth in 2011 has reinforced that position, according to the company.
"At a time when some companies are continuing to shrink, our MEMIC Indemnity Company unit has grown by more than 25 percent this year," Leonard said. "That is a clear indication that there is a strong desire in most markets for a service-oriented insurer like MEMIC. Our expansion into the mid-Atlantic is a natural progression for our company. Even before we open our offices, we're getting great response from independent agents in these territories."
About MEMIC
Specializing in workers' compensation insurance, MEMIC insures more than 18,000 employers and their estimated 200,000 employees. Based in the Northeast, MEMIC is the leading workers' compensation insurer in Maine through Maine Employers' Mutual Insurance Company which is rated A (Excellent) by A.M. Best. The company is the parent of MEMIC Indemnity Company, rated "A" (Excellent) by A.M. Best, with offices in Manchester, NH; Glastonbury, CT; and Albany, NY. MEMIC Indemnity Company is licensed to write workers' compensation in 45 states plus the District of Columbia.
MEMIC 12.20.2011