Protecta in line for takeover

Protecta Insurance has alerted dealers it is closing in on a deal to be taken over by the New York-based company Assurant.

A letter from Protecta to traders says: “On behalf of the directors and shareholders we wish to advise that Protecta is now in the advanced stages of finalising a sale of its shareholding to the parent of our current underwriter, Virginia Surety Company [VSC].”

VSC is a wholly owned subsidiary of Assurant, which is listed on the New York Stock Exchange and is a global provider of risk-management solutions, including vehicle and warranty insurances.

“VSC has an A (excellent) rating in New Zealand and the sale will bring a number of opportunities to our agents and staff,” the letter continues.

Protecta is also making new sub-agency agreements with dealers and agents, which it notes have not been reviewed for some years

“We can advise that the changes are being made to incorporate existing regulatory obligations and that they have no impact on your core commercial arrangements with Protecta.”

Appointed as Protecta’s underwriter in September 2018, VSC is one of the largest underwriters of insured service plans and warranty products in the world.

As for Assurant, it has a presence in more than 20 countries and protects more than 40 million vehicles globally.