Maryland-based commercial property/casualty insurer Harford Mutual Insurance Group announced that it has received final approval from the Maryland Insurance Administration of its merger with ClearPath Mutual Insurance Co., a monoline workers’ compensation carrier headquartered in Louisville, Kentucky.
The merger, which was announced in March, became effective August 4, 2023.
Under the terms of the merger agreement, ClearPath Mutual merged into Harford Mutual Insurance Group and converted to a stock insurer. Post-merger it will be renamed Clearpath Insurance Co. marketed as Clearpath Specialty.
The newly formed Clearpath Specialty has re-domesticated to Maryland.
All policyholders of ClearPath Mutual will obtain membership rights in Harford Mutual as policyholders of the newly formed Clearpath Specialty.
“This is an exciting step forward in Harford Mutual’s nearly 181-year-old history,” said Steve Linkous, president ad CEO of Harford Mutual.
ClearPath Mutual, formerly KESA of Kentucky for 40 years, was formed in 2018 and currently provides monoline workers’ compensation coverage in Indiana, Kentucky, Georgia, Tennessee, and West Virginia. ClearPath Mutual writes more than $52 million in direct written premium across nearly 7,000 policies.
ClearPath Mutual’s current home office in Louisville will remain in place and serve as Harford Mutual’s Midwest office.
Harford Mutual said it will retain all ClearPath Mutual employees and plans to merge efficiencies.
Jeff Borkowski, ClearPath Mutual’s current president and CEO, will become a vice president of Harford Mutual and remain president of Clearpath Specialty with Steve Linkous becoming CEO.
ClearPath Mutual’s board of directors will remain intact for two years, with Linkous joining the board as a director. ClearPath Mutual board chair, Sean Garber, will remain on Clearpath Specialty’s board as chair and will join Harford Mutual’s board of directors.
Harford Mutual Insurance Group, founded in 1842 in Harford County, Maryland, provides commercial property/casualty insurance to a regional market. Harford Mutual ended 2022 with $327 million in direct written premium sold through independent agents in 10 states and Washington, D.C.
Topics Mergers & Acquisitions Workers' Compensation Talent Maryland Kentucky
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