Excess Options Shrink Further: Midlands Management Acquired by Safety National

Safety National Casualty Corporation, a multi-line specialty insurance carrier that offers risk solutions for large commercial and public entity clients, has acquired Midlands Management Corporation, a managing general agent (MGA), wholesale broker, program administrator and insurance services provider with a specialty in excess workers’ compensation. As a result of this transaction, Midlands Management Corporation is now a wholly-owned subsidiary of Safety National and a member of the Tokio Marine Group.

In a press release discussing the move, Mark Wilhelm, Safety National CEO, was optimistic about the move. “We are very excited about this opportunity,” said Wilhelm. “Safety National is gaining a specialty MGA with a successful long-term track record, proven leadership and a talented team of customer-focused employees.”

On an industry-wide level, excess workers’ compensation carriers are limited, and this deal could move the needle further in that direction. However, Tom Grove, Chief Business Development Officer at Safety National, disagreed that the merger might cause the abbreviated market to tighten. “We do not anticipate any impact to market availability. Brokers are free to approach either company with new business and each company will handle their own renewals independently,” he said.

For his part, Duke Niedringhaus, Senior Vice President at St. Louis-based J.W. Terrill, believes the deal signifies stability. “Excess workers’ compensation has a tail liability that can exceed 25+ years, so the addition of the Safety National financial strength should offer substantial value to clients of Midlands Management,” he said. “The excess work comp market still remembers a few carrier insolvencies and underwriters that have jettisoned the line – both Safety National and Midlands are long term stable markets. This is a merger of two organizations that both represent the greatness of partnerships in the insurance industry.”

Safety National’s and Midlands’ executive teams will remain intact and the acquisition will have no effect on Midlands’ day-to-day operations. There are no plans to make any personnel changes and Midlands’ headquarters will remain in Oklahoma City.

“It is business as usual for Midlands from an operations standpoint, but not from an offerings perspective,” said Duane Hercules, President of Safety National. “Midlands’ customers will continue working with their existing Midlands’ contacts, however, they will gain access to new products and services backed by an A+ rated carrier. In turn, Safety National gets the opportunity to offer its market-leading products and services to an expanded audience. We are enthusiastic about our future together.”

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