Accident Fund Insurance Company of America Signs Agreement to Purchase CompWest Insurance Company

LANSING, MI (CompNewsNetwork) - Lansing, MI-based Accident Fund Insurance Company of America has entered into an agreement with the shareholders of CWI Holdings Inc. to purchase CWI and its wholly owned subsidiaries, including San Francisco, CA-based CompWest Insurance Company.

Accident Fund is one of the nation's leading workers compensation insurers, providing workers compensation coverage for the past 95 years.  Accident Fund operates in 43 states and the District of Columbia and is the 15th largest writer of workers compensation insurance in the nation. CompWest was founded in 2004, is one of California's fastest growing specialty workers compensation insurers with more than 2,000 customers, and is the market leader in a service offering called Workers' Compensation with Care(TM).

The acquisition complements Accident Fund's workers compensation business, both strategically and geographically.  The company has grown extensively in the last seven years through a strategy that includes reaching out to markets all over the country.  Accident Fund specializes in providing workers compensation coverage to small or mid-sized companies in the Midwest. There are no plans to merge operations of the two companies, but Accident Fund intends to work collaboratively with CompWest to meet the needs of businesses across the country. CompWest will operate independently, and its seasoned senior management team will continue to lead the direction of the company.

"We've expanded into other states since 2000 and were looking for the right partner in the West to ensure our continued growth. CompWest is a trusted company that has established strong financial numbers and a great reputation for excellence," said Elizabeth R. Haar, president of Accident Fund. "Both companies share the philosophy that an insurance policy is a promise to help employers when an injury occurs and to treat others as we would want to be treated." 

"We benefit from aligning with a company that is financially strong with an "A" (Excellent) rating from A.M. Best.  Accident Fund knows our business; it provides significant financial strength to us, and it is a long-term investor in the workers compensation industry," said Bill Mudge, president of CompWest Insurance Company, who will remain as president and CEO.  "Its culture and business philosophy are closely aligned with ours and it will be a good fit."

The purchase is anticipated to close before year-end, pending necessary approval from federal and state regulatory agencies.  MTS Health Partners and StoneRidge Advisors were financial advisors to Accident Fund for the acquisition and Banc of America Securities LLC was the exclusive financial advisor to CWI and its shareholders, including Stone Point Capital LLC.