Response Insurance Group Acquiring Worldwide Insurance Company & Worldwide Direct Auto Insurance
Puts Response Among 15 Largest Direct Auto Insurers in the Nation MERIDEN, Conn., Jan. 27 -- The Response Insurance Group of Companies, direct-to-the-consumer auto insurers, announced it had signed a stock purchase agreement to acquire Worldwide Insurance Company and Worldwide Direct Auto Insurance Company from Great American Insurance Company, the insurance subsidiary of American Financial Group, Inc. The purchase will more than double the size of Response and make it one of the nation's largest auto insurers. Upon completion of the sale and regulatory approval, the Response Insurance group, which is a subsidiary of Direct Response Corporation, will have more than 100,000 in-force policies in 44 states putting it among the 15 largest direct auto insurers in the nation and among the 100 largest personal auto insurers. Mory Katz, President & Chief Executive Officer of Direct Response Corporation and Chairman of the subsidiary Response Insurance Group of Companies, made the announcement as the Company signed a stock purchase agreement for an amount equal to the policyholders' surplus of the Worldwide companies plus $17 million. The transaction will require the filing of a "Form A" application and approval from the Ohio Department of Insurance. "This acquisition solidifies our plan to build Response into the next large national direct auto insurer in the country," said Mr. Katz. He estimates that their net written premium for 2003 will be $125 million. The acquisition includes a personal auto book of business with more than 55,000 policyholders, renewal rights on other policies, and a call center in St. Louis, MO. The premiums generated by the Worldwide companies represented approximately 70% of AFG's personal auto insurance premiums written on a direct basis. About Response: Response Insurance is a national auto insurance company focusing on insuring safe, responsible drivers. The Company is known for its low rates and great customer service. Consumers reach Response Insurance through a toll-free number (1-800-RESPONSE) and their website, http://www.Response.com, which provides real-time quotes and the power to fully complete transactions online. Response Insurance's parent company, Direct Response Corporation (DRC), was formed in 1996. DRC and its subsidiary companies and programs, including Connecticut Life & Casualty Insurance and Teachers' Insurance Plan, are headquartered in Meriden, CT. The Company also has offices in Suisun City, CA and Melville, NY. About Worldwide: Worldwide Insurance Company and Worldwide Direct Auto Insurance Company are both headquartered in Cincinnati, OH. Their parent company, Great American Insurance Company, was founded in 1872. Contact: Ray Palermo Director of Public Relations Response Insurance 500 South Broad Street Meriden CT 06450 Tel: 203-634-7251 RPalermo@Response.com