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Auto Club Insurance Association to Acquire MEEMIC Insurance Company

Posted on: Thursday, 5 March 2009, 09:30 CST

DEARBORN, Mich., March 5 /PRNewswire/ -- Auto Club Insurance Association, a Dearborn, Michigan-based insurer (ACIA), announced today it has agreed to acquire MEEMIC Insurance Company (MEEMIC) and its insurance agency affiliate, MEEMIC Insurance Services Corporation.

ACIA is the second largest provider of auto insurance in Michigan based on net premiums written. It offers a full range of personal lines insurance products and services through a network of 725 captive agents and more than 1,000 independent agents located throughout the Midwest. ACIA is an affiliate of AAA Auto Club Group, which provides membership, travel, and financial services to over 4.1 million AAA members in eight states, including Illinois, Indiana, Iowa, Michigan, Minnesota, Nebraska, North Dakota, and Wisconsin.

Formerly known as Michigan Educational Employees Mutual Insurance Company, MEEMIC is headquartered in Auburn Hills, Michigan and provides auto, homeowners, boat, and umbrella insurance to employees of educational institutions and their families. It is owned by GMAC Financial Services and its affiliates (GMAC). Its workforce includes approximately 130 employees and a network of more than 70 captive agents primarily serving customers in Michigan.

The acquisition will provide access to a complementary, highly attractive market segment, a platform for growth in other states and economic synergies. Following the closing, MEEMIC will operate as a wholly-owned subsidiary of ACIA. It will be managed separately from ACIA's existing insurance operations and continue to operate under the MEEMIC name.

The transaction is expected to close early in the second quarter of 2009, subject to applicable legal and regulatory approvals.

Friedman, Billings, Ramsey & Co., Inc. and Locke Lord Bissell & Liddell LLP served as exclusive financial advisor and outside legal counsel, respectively, to ACIA in connection with the acquisition. Bank of America Merrill Lynch and Foley & Lardner LLP served as exclusive financial advisor and outside legal counsel, respectively, to GMAC.

SOURCE Auto Club Insurance Association

Source: PR Newswire

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