Alfa Corporation has completed the acquisition of the Vision Insurance Group, a managing general agent for auto insurance. Alfa Corporation purchased Vision for $20 million in cash and stock with an additional purchase consideration of up to $14 million based on future performance.
Vision Insurance Group was founded in 1997 by John Russell as a full-service managing general agency that currently writes nonstandard automobile insurance policies in nine US states. The company is headquartered in Brentwood, Tennessee and its direct written premium for 2003 was approximately $62 million.
Alfa commented that it views this acquisition as an opportunity to expand its personal lines business in new markets through utilizing Vision’s 2,500 independent agents. With this endeavor in mind, Alfa has formed an insurance subsidiary, Alfa Vision Insurance Corporation, through which Vision will write its nonstandard automobile business.
Vision currently operates in Texas, Missouri, Indiana, Ohio, Virginia, Tennessee, Arkansas, Kentucky, and Florida. Both Vision and Alfa Vision Insurance Corporation will be wholly owned subsidiaries of Alfa Corporation.