The Hartford To Acquire Omni Insurance Group

Deal Expands Company’s Reach Into Non-Standard Auto Business

October 16, 1997

HARTFORD, CT. -- The Hartford Financial Services Group, Inc. (NYSE:HIG) today announced the acceptance of its cash tender offer to acquire all outstanding shares of Omni Insurance Group, Inc. (NASDAQ/NM:OMGR), an Atlanta-based non-standard auto insurer.

The Hartford agreed to pay $31.75 per share for a total of $187 million. The transaction has been approved by the boards of directors of both companies, and by Omni Chairman and CEO Dudley L. Moore, Jr., and Omni President and COO J. Paul Kennedy, who agreed to vote their shares in favor of the acquisition.

"This important strategic acquisition will allow us to combine the management and distribution strengths of The Hartford’s personal lines organization and the specialized expertise of the aggressive, rapidly growing Omni organization," said Ramani Ayer, The Hartford’s Chairman and CEO. "We see an excellent opportunity to further expand this operation nationally across all our distribution channels." Omni will become a subsidiary of The Hartford.

Omni is ranked 22nd among non-standard auto insurers and is licensed in 25 states and the District of Columbia. The company currently writes non-standard automobile insurance for individuals through approximately 3,500 independent agents in 11 states. Since 1988, the company achieved a gross written premium compound annual growth rate of 26%.

The Hartford is the 5th largest stock-owned insurance company in the U. S., and the 11th largest personal lines insurer, with 1996 net written premiums of $1.86 billion for its personal lines operations.

"This transaction is an excellent opportunity for our shareholders and will produce significant strategic advantages to both organizations," said Moore, who founded the company in 1986. "It will combine Omni’s strength in the non-standard auto niche with The Hartford’s financial strength, name recognition, and distribution capabilities.

Our associates, agents and customers will benefit significantly from being part of a much larger organization."

The Hartford (NYSE:HIG) is one of the nation's oldest and largest international insurance and financial services operations, with 1996 revenues of $12.5 billion. As of June 30, 1997, The Hartford had assets of $121.1 billion and shareholders’ equity of $5.4 billion. The company is a leading provider of commercial property and casualty insurance, automobile and homeowners coverages, and a variety of life insurance, annuities, employee benefits and asset management plans.

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