Alaska National Definitively Agrees to Be Acquired by CopperPoint
ANCHORAGE—CopperPoint Insurance Companies, a western-based regional commercial insurance company, announced an agreement to acquire Alaska National Corporation and its wholly owned subsidiary Alaska National Insurance Company (ANIC), an Alaska domiciled workers’ compensation and commercial insurance carrier. As of mid-year, Alaska National Insurance Company has a statutory surplus of approximately $550 million. In 2018, the company had gross written premium of $250 million and the combined companies will represent approximately $650 million in premium and an asset base of nearly $4.8 billion.
“It’s an exciting time in our nearly ninety-five-year history as we look forward to welcoming Alaska National and their 250 employees into the CopperPoint Family of Insurance Companies,” said Marc Schmittlein, President and CEO of CopperPoint Insurance Companies. “We have been on a journey of transformation as we continue our geographic and product diversification strategy with the vision of becoming the leading regional commercial insurance company for the western United States.”
Alaska National brings a proven track record for strong underwriting discipline and exemplary service as evidenced by the company’s inclusion in the Property-Casualty Ward’s 50 Companies for each of the past nine years. Alaska National is licensed in twenty-six states, opening opportunities for CopperPoint to continue its diversification strategy. CopperPoint’s headquarters will remain in Phoenix, Arizona, while Alaska National will continue operating under its company name and will remain domiciled and home-based in Anchorage. The combined companies will have a locally-focused footprint with ten offices in Anchorage, Boise, Denver, Irvine, Las Vegas, Phoenix, Portland, Seattle, Walnut Creek, and Westlake Village. This enables and reinforces the companies’ shared essential philosophy of getting close to their distribution partners and their policyholder customers.
“For nearly forty years, our company has focused on building personal relationships and developing customized solutions designed to achieve safer futures and better outcomes for our customers,” said Craig Nodtvedt, CEO of Alaska National. “CopperPoint is an ideal strategic partner and strong cultural fit for us. Both of our companies are deeply committed to employee excellence and to delivering best-in-class service to all of our stakeholders. We especially like that Alaska National will become part of CopperPoint’s mutual holding company structure where we can maintain our long-term view of the business allowing us to concentrate first on the needs of our customers.”
“Alaska National helps us significantly expand our portfolio of insurance products and geography, enabling us to better meet the evolving needs of our brokers, agents, and customers,” Marc Schmittlein continued. “They are highly respected in the industry, recognized for their stellar service, exceptional financial performance, and talented employees. We are excited and confident about the future.”
CopperPoint privatized from the state of Arizona and converted to a mutual insurance company in 2013. Subsequently, CopperPoint introduced additional commercial insurance products, including commercial package, auto, and umbrella in Arizona. In 2017, the company acquired Pacific Compensation Insurance Company, a California domiciled company, expanding into the California market. In 2018, CopperPoint further expanded and began to offer products under the CopperPoint brand in Colorado, Nevada, New Mexico, and Utah. Earlier in 2019, CopperPoint adopted a new mutual insurance holding company corporate structure to support the continued growth of the company.
The transaction is expected to close once customary regulatory reviews and approvals are received.
Waller Helms Advisors and Locke Lord LLP served as advisors to CopperPoint Insurance Companies. Macquarie Capital and Debevoise & Plimpton LLP served as advisors to Alaska National Corporation.
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Spreading the Word
When Bristol Bay Native Corporation (BBNC) first aired TV commercials featuring the tagline, “A Place That’s Always Been,” the reaction was surprising. Not only because they received numerous accolades and marketing awards for the campaign but because, at the time, it was rare for Alaska Native corporations to market themselves through the media.