Hartford to Acquire Maxum in First Acquisition for CEO Swiftby
CEO to pay $170 million, deal to be completed in third quarter
Maxum will remain in Alpharetta, Georgia, retain all employees
Hartford Financial Services Group Inc. agreed to buy a Georgia-based provider of commercial insurance in Chris Swift’s first acquisition as chief executive officer.
The buyer will pay $170 million in cash for Northern Homelands Co., the holding company of Maxum Specialty Insurance Group, according to a statement Wednesday from Hartford, which is based in the Connecticut city of the same name. The target company’s staff of 80 will be offered continued employment, Heather Serignese, a spokeswoman for Hartford, said by phone.
Swift became CEO in 2014 and focused initially on using excess capital to repurchase shares and redeem debt. He said in July that he may pursue acquisitions and that it had come time to be “a little bit more offensive-minded” about opportunities for growth. Maxum’s offerings include property coverage and insurance that protects medical professionals, engineers and corporate officials against lawsuits.
The acquisition “accelerates our efforts to build upon our market-leading position in small commercial by expanding our product offerings and capabilities,” Hartford President Doug Elliot said in the statement.
Maxum will remain based in Alpharetta, Georgia, after the completion of the transaction, which is expected in the third quarter, Hartford said. The deal won’t have a material impact on financial results, according to the statement.