Church Mutual to buy Pennsylvania School Boards Association insurance holdings

MERRILL, Wis.–(BUSINESS WIRE)–Church Mutual Insurance Company (CMIC), the nation’s largest insurer of
religious organizations, has agreed to acquire the insurance operations
of the Pennsylvania School Boards Association (PSBA).

Under the acquisition agreement, CMIC will acquire School Boards
Insurance Company of Pennsylvania, Inc. (SBIC), and School Claims
Services, LLC (SCS). SBIC, based in Mechanicsburg, Pa., writes
specifically tailored types of coverage, including property, general
liability, boiler and machinery, commercial auto, errors and omissions
(School Leaders Legal Liability), or excess liability and workers’
compensation to meet the needs of its Pennsylvania public schools
policyholder base. SCS, based in New Cumberland, Pa., provides
third-party claims administration, risk management services, as well as
employee benefits programs and marketing.

“This agreement is a win-win for Church Mutual and the Pennsylvania
School Boards Association’s insurance operations,” said Mike Ravn, chief
executive officer of CMIC. “In an effort to diversify holdings and
increase financial stability, Church Mutual and SBIC are unifying to
expand expertise and enhance value in serving schools and other
organizations critical to their communities.”

“This agreement in no way diminishes Church Mutual’s commitment to
religious organizations,” said Rich Poirier, president of CMIC. “CMIC’s
experience in insuring religious schools makes it duly qualified to help
Pennsylvania school organizations mitigate risk and restore loss.”

“CMIC and SBIC share a compatible and complementary mission and a
culture dedicated to protecting our members,” said Nathan Mains, PSBA
executive director. “We look forward to this next evolution in providing
our members with the highest quality insurance products and service
available.”

Terms of the agreement were not disclosed. It is anticipated the
acquisition will close during the second quarter of 2016, on or about
April 1.

About Church Mutual Insurance Company

Church Mutual Insurance Company was founded in 1897 and offers
specialized insurance for religious organizations of all denominations,
including religious-related schools, camps, denominational offices and
senior living facilities. Church Mutual markets most lines of commercial
property and liability insurance, including multi-peril, workers’
compensation and commercial auto insurance. It is rated A (Excellent) by
industry analyst A.M. Best and was named to the prestigious Ward’s 50
Top Performers list in 2015.

About School Boards Insurance Company of
Pennsylvania, Inc.

Originally formed as a Bermuda-based captive in 1978, School Boards
Insurance Company became a Pennsylvania domiciled company in 2006. The
company’s mission is to provide PSBA members the needed property,
casualty and other insurance coverages and services needed by
Pennsylvania public schools and related entities.

About School Claims Services, LLC

School Claims Services, LLC, a wholly owned subsidiary of the PSBA
Insurance Trust and created for the benefit of public schools, has
dedicated itself to setting the standard for the delivery of claims and
risk management services, as well as employee benefit type programs.

Contacts

Church Mutual Insurance Company
Jay Lillge
Title: Corporate
Communications Manager
Phone: (715) 539-4503
Email: jlillge@churchmutual.com