UFG and Nationwide enter into renewal rights agreement for personal lines business
Cedar Rapids, IA - United Fire & Casualty Company (UFG) and Nationwide have entered into a renewal rights agreement for UFG’s personal lines business, providing UFG’s independent insurance agents with the opportunity to transfer personal lines policies to Nationwide beginning in the third quarter of 2020, subject to the receipt of applicable regulatory approvals.
As part of this agreement, Nationwide will offer contracts to nearly all UFG personal lines agents across the country they aren’t currently doing business with.
Both companies are focused on creating a seamless transition for policyholders and agents. To ensure no lapse in coverage to policyholders, Nationwide will offer replacement policies to personal lines policyholders at the time of renewal.
UFG completed entry into a renewal rights agreement with Nationwide as part of its long-term strategic planning, allowing the company to focus on the success of its core commercial lines business, which currently represents 94% of its business mix. It did not initiate the agreement as a result of market conditions from the COVID-19 pandemic.
Though this agreement signifies UFG’s exit from the personal lines market, it will have no immediate impact on the 12 UFG employees who currently work in the personal lines division. These staff members will continue to serve the needs of personal lines agents and policyholders during the transfer period, and all will be encouraged to apply for other positions within UFG.
“UFG’s decision to exit the personal lines market was purely a strategic one as we concentrate our efforts on the growth and profitability of our core commercial lines business, including commercial insurance, excess and surplus lines insurance and surety bonds,” explained UFG President and CEO Randy Ramlo. “We are pleased to be able to partner with Nationwide in this decision—a leading insurer in the personal lines market that shares our commitment to serving independent insurance agents and their customers. We look forward to working with Nationwide in the months ahead to ensure a seamless transfer process and a successful outcome for all those involved.”
“This is a great opportunity for Nationwide to work with more independent agents who can sell our products and services and to welcome more members to the Nationwide family. We are also pleased to be working with a great partner like UFG,” said Shelley Brazeau Temple, president of Nationwide’s personal lines business.
Founded in 1946 as United Fire & Casualty Company, UFG, through its insurance company subsidiaries, is engaged in the business of writing property and casualty insurance.
Through our subsidiaries, we are licensed as a property and casualty insurer in 46 states, plus the District of Columbia, and we are represented by approximately 1,000 independent agencies. A.M. Best Company assigns a rating of "A" (Excellent) for members of the United Fire & Casualty Group.
For more information about UFG visit www.ufginsurance.com.
Nationwide, a Fortune 100 company based in Columbus, Ohio, is one of the largest and strongest diversified insurance and financial services organizations in the United States. Nationwide is rated A+ by both A.M. Best and Standard & Poor’s. An industry leader in driving customer-focused innovation, Nationwide provides a full range of insurance and financial services products including auto, business, homeowners, farm and life insurance; public and private sector retirement plans, annuities and mutual funds; excess & surplus, specialty and surety; pet, motorcycle and boat insurance. For more information, visit www.nationwide.com. Follow us on Facebook and Twitter.