provider of auto insurance with an emphasis on serving Hispanic consumers,
today announced that it has acquired auto insurance brokerage West Coast
Auto Insurance Services. The acquisition broadens Confie Seguros' presence
throughout California and places it on track to become the leading national
insurance distribution company primarily focused on the needs of Hispanic
consumers.
The Confie Seguros management team has developed a growth strategy to
build a company that caters to the underserved Hispanic market. Funding for
future acquisitions will be provided by commitments from private equity
firm Genstar Capital, and the company management team, for $75 million, as
well as a bank facility with expected capacity in excess of $200 million.
With nearly $300 million of capital commitments, Confie Seguros expects to
build a national distribution company focusing on eight to 10 of the most
densely populated Hispanic markets, including California, Arizona, Florida,
Texas, Illinois, and Nevada. With the acquisition of West Coast, Confie
Seguros now has an annual run-rate of $75 million in revenues, well over
300,000 customers, $250 million in annual written premiums, and over 80
retail brokerage stores throughout California.
"West Coast is a rapidly growing company that meets our strategic
objective of identifying companies that will help us establish the
country's leading insurance brokerage catering primarily to Hispanic
consumers," said John Addeo, CEO of Confie Seguros. "As we continue
broadening our footprint by targeting strategic acquisitions and opening
new stores in existing markets, our goal is to continue providing an
unmatched level of customer service and product offerings for our
customers."
John Klaeb, CEO of Confie Seguros California, said, "We are very
excited about acquiring and integrating West Coast into our organization to
expand our reach into the California auto insurance market. We have
invested significantly in training our people and improving our retail
locations to meet the Hispanic consumers' desire for face-to-face
purchasing. Our relationship with Confie Seguros will allow us to continue
providing that superior level of service." Confie Seguros California, led
by COO Joe Waked, plans to complete the integration of West Coast by the
end of 2008.
Mordy Rothberg, President of Confie Seguros, said, "We expect to
integrate West Coast into our operations quickly so we can leverage our
existing infrastructure to introduce complementary insurance products -
such as life and homeowner's insurance - to serve all of our consumers'
needs."
Earlier this year, Confie Seguros partnered with Westline (now Confie
Seguros California), one the largest distributors of non-standard auto
insurance products throughout California. Confie Seguros California offers
its products through three brokerage operations: South Coast Auto
Insurance, Solo Insurance, and Freeway Insurance.
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