(BRK.A), (BRK.B)
Berkshire Hathaway’s insurance company Wellfleet has agreed to terms with National Guardian Life Insurance Company (NGL) to acquire through renewals its Student and Special Risk business.
Much of that business is processed through Commercial Travelers Life Insurance Company in Utica, New York, a wholly owned NGL subsidiary.
Wellfleet will immediately assume responsibility for administrating NGL’s special risk policies and collegiate accident and health insurance, which insures over 26,000 students on approximately 100 campuses across the United States. Wellfleet will maintain NGL’s Utica, NY office, employing more than 30 insurance professionals.
“We are pleased that we have entered into this agreement with Wellfleet, one of the nation’s leading providers of health and accident insurance products to the higher education market. This transition provides our customers the ability to renew their business with a highly respected insurer who will deliver quality service. This transaction allows NGL to focus on our other lines of business,” said Knut A. Olson, NGL’s President & CEO.
“Wellfleet’s specialization in Student and Special Risk coverage for more than 25 years, and respected reputation in the market, gives NGL’s talented employees, loyal clients, and growing member base the best possible solution for operational continuity,” Olson said.
Wellfleet President & CEO, Andrew DiGiorgio, noted Wellfleet’s longtime business relationship with NGL and Commercial Travelers, and reiterated Wellfleet’s commitment to a smooth transition for NGL’s clients and members.
“Our priorities are to honor the commitments NGL extended to its customers, and to deliver quality service and customer-centric solutions to clients, members and distribution partners,” said DiGiorgio.
Completion of the transaction is subject to various conditions, including the receipt of required regulatory approval, and is expected to close in the third quarter of 2019.
© 2019 David Mazor
Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.