Safety Insurance Group, through a wholly-owned unit, has signed a non-binding letter of intent to purchase the assets and operations of Northeast Insurance Agency (Northeast / Metrowest).
Upon closing of the potential deal, Northeast / Metrowest will retain its stand-alone status within Safety’s holding company.
It will remain under the executive leadership of Northeast / Metrowest co-principal Scott Bulger.
Northeast / Metrowest staff will join the Safety subsidiary as part of the potential deal.
The offices of Northeast / Metrowest in Auburn, Falmouth, Needham and Westborough will continue operations from their existing locations.
Northeast / Metrowest co-principal Scott Bulger said: “We are excited to further our long-term valued partnership with Safety while continuing to provide the products and service we are known for in the New England market.”
Established in 1989, Northeast / Metrowest offers personal and commercial insurance to its customers.
Safety Insurance Group president and CEO George M Murphy said that the takeover will bolster its position within the independent agency channel and positioning it for future prosperity.
Murphy added: “Over 30% of our current policies are handled in our Service Center and there will be numerous synergies that can be recognised by both Safety and Northeast / Metrowest, that will enhance our policyholder services.”
Safety board of directors chairman David F Brussard said: “We are always looking for ways to grow shareholder value, and the opportunity to acquire an agency with the scale and experience of Northeast / Metrowest provides us an additional revenue platform.
“Safety and Northeast / Metrowest have had a great partnership for over 20 years and this transaction demonstrates our continued support of the independent agency system.”
The deal is planned to close in the fourth quarter of this year, subject to customary conditions.