Applied Underwriters to Acquire Alaska Timber Insurance Exchange

Tuesday, August 24, 2021 | 0

Applied Underwriters said it anticipates acquiring Alaska Timber Insurance Exchange by the fourth quarter of the year after it completes the conversion from a reciprocal to a stock insurance company.

Applied Underwriters said a deal reached in September 2020 established procedures for the transaction, including North American Casualty Co.’s purchase of the 41-year-old exchange.

Applied said in a statement that it’s common practice for reciprocal exchanges such as Alaska Timber Insurance Exchange to convert to a stock company to attract capital and facilitate growth.

Alaska Timber Insurance Exchange was formed in 1980 by members of the Alaska Loggers Association, now the Alaska Forest Association.

“While ATIE was originally created to serve the Alaskan forest products industry for its particular needs in the non-assessable workers’ compensation area, it has diversified successfully since 2002 such that its book of business is now 13% in that risk sector, while 87% is outside of logging and forestry-related risks, mostly in complex underwriting areas in which we have great experience and depth,” Applied Underwriters President Jamie Sahara said in a statement.