State Farm closed their purchase of GAINSCO, making it their very first insurance company acquisition in State Farm’s 98-year history.
GAINSCO is a Dallas-based holding company, concentrating on non-standard personal automobile insurance and specializing in minimum-limits auto insurance. GAINSCO generated nearly $268 million in annual premiums in the non-standard personal auto space in 2019, suggesting that the acquisition could provide State Farm a meaningful boost in the market in the future.
Under this agreement, State Farm Mutual will acquire 100% of the stock of GAINSCO Inc., and shareholders will receive approximately $107.38 per share in cash. GAINSCO will operate as a separate company and brand, and State Farm agents will be able to distribute GAINSCO products.