US financial holding company Hilltop has brokered a deal to sell its fully-owned subsidiary National Lloyds to Align Financial in an all-cash deal valued at nearly $150m.
National Lloyds is a specialty property insurer based in Texas. It primarily caters to owners of mobile homes and lower value homes.
The specialty property insurer operates two subsidiaries, National Lloyds Insurance and American Summit Insurance for writing premiums.
It also has a fully-owned agency and services businesses, which include Nalico General Agency.
The specialty property insurer is said to have a distribution network of nearly 3,900 independent agencies and active licences in more than 40 US states.
Hilltop president and CEO Jeremy Ford said: “We believe the sale of National Lloyds allows Hilltop to better focus our resources on growing our core operating companies of PlainsCapital Bank, PrimeLending, and HilltopSecurities.
“I have worked closely with National Lloyds since Hilltop first acquired it in 2007, and have remained proud of the company, its exceptional employees, and its strong results throughout that time.”
Concurrently, Align Financial has also agreed to a deal to sell the two National Lloyds’ insurance carrier subsidiaries to ReAlign Insurance in an all-cash transaction.
ReAlign is an insurance holding company created by ReAlign Capital Strategies and MGI Insurance, a private investment fund.
As part of the deal, National Lloyds’ agencies retained by Align Financial, or their affiliates, will sign multiple agreements with the insurance carriers of the specialty property insurer.
The deals will allow the agencies to offer services, which includes serving as a program underwriting manager and claims administrator for the carriers upon completion of the transaction.
Align Financial CEO Kieran Sweeney said: “During the course of its 70-year history, National Lloyds has built excellent product offerings in the specialty personal property marketplace.
“We believe Align’s unrelenting focus on superior underwriting, delivering quality specialty insurance products and using advanced technologies to enhance the customer experience, coupled with our relationship-based culture, will be a perfect fit for National Lloyds’ employees, clients and independent agents.”