Poolman Approves County Mutuals Merger: 30 Counties Affected
Posted on 7/19/2001
FOR IMMEDIATE RELEASE
Contact: Jim Poolman
July 19, 2001
Bismarck, ND - North Dakota Insurance Commissioner Jim Poolman this week approved the merger of LaMoure-Greenfield and Northeast Mutual, headquartered in North Dakota. Under the agreement, Northeast Mutual will assume all of the duties and obligations of LaMoure-Greenfield. The boards of both companies voted to approve the merger.
County mutuals are licensed insurance companies that insure similarly selected individuals in a restricted geographical area.
The merger will affect 30 of North Dakota's 53 counties, a territory extending north and south from Bottineau to Emmons counties, and east to west from Kidder to Cass counties. Northeast Mutual covers about 1,400 policyholders and has about 63 agents. LaMoure-Greenfield covers about 1,000 policyholders and fields about 50 agencies. Some agents work for both companies, and the combined firm will employ about 75 agents.
"As always, the first concern in a merger is the welfare of consumers, and in this case, the companies presented convincing evidence that policyholders would be better served by combining the companies' resources."
Poolman determined that the merger would have a number of advantages for North Dakota: it preserves the integrity of the county mutual system, which provides insurance to many who may not be eligible for coverage in the commercial market; secures the financial condition of policyholders of LaMoure-Greenfield; spreads risk over a larger geographical area; and allow Northeast Mutual to expand into a desirable geographical area by acquiring LaMoure-Greenfield's policyholders.
The new configuration of the merged companies' coverage area - encompassing about 10 additional counties - will spread the risk more broadly and further protect the entire pool of policyholders, according to Poolman.
"This merger will provide stability and continuity for LaMoure-Greenfield policyholders by putting their insurer on sounder financial footing," Poolman said.