Harford Mutual Insurance Group said late Thursday that monoline workers’ comp insurer ClearPath Mutual Insurance Co . would merge with the larger property/casualty insurance company.
Terms of the deal were not disclosed.
Louisville, Kentucky-based ClearPath, which until 2018 was known as the Kentucky Workers’ Compensation Fund, or KESA, offers coverage in Georgia, Indiana, Kentucky, Tennessee and West Virginia. It operates through independent agents and relationships with local chambers of commerce and other associations.
ClearPath writes more than $52 million in direct written premium across about 7,000 policies, according to a statement from Bel Air, Maryland-based Harford.
According to the 2021annual report, the most recent year for which figures are available, ClearPath reported a profit of $5.3 million for the year and a total expense ratio of 103.5%. It had $253.8 million in occupied assets. It will continue under its existing name after the merger, the statement said.
Harford Mutual, which writes a broad range of commercial lines in the Mid-Atlantic and Southeast, reported $290 million in direct written premium in 2021, a net profit of $30.7 million and an all-in expense ratio of 91.6%. It had $731.4 million in total assets.
In the statement, Jeff Borkowski, president and CEO of ClearPath, said the merger “will provide us with the scalable infrastructure and regional reach to meet our strategic goals.”