LWCC, Louisiana’s largest workers’ compensation insurance provider, has announced the acquisition of 100% ownership of Prescient National, a North Carolina-based workers’ compensation insurer.
Following the transaction, Prescient National, which holds an “A” rating from AM Best, will function as a subsidiary of LWCC.
The acquisition merges two workers’ compensation insurers with strong financial performance and a shared focus on stakeholder commitments. LWCC noted that the deal would diversify its investment portfolio while creating opportunities for both companies to leverage each other’s strengths.
Bruce Flachs, CEO of Prescient National, expressed optimism about the partnership, noting the strong alignment between the two organizations.
Despite the acquisition, Prescient National will maintain its operations independently from its headquarters in Charlotte, North Carolina.
Keefe, Bruyette & Woods, a subsidiary of Stifel, served as LWCC’s exclusive financial advisor, with Sidley Austin LLP providing legal counsel. Prescient National received financial guidance from Howden Capital Markets & Advisory, while Robinson Bradshaw served as legal counsel.
Elsewhere in the state, Louisiana Insurance Commissioner Tim Temple has identified key reforms needed to stabilize the state’s challenging auto and home insurance markets, with a focus on reducing excessive litigation and strengthening building codes.
A report from October shows Louisiana residents are 2.3 times more likely to enter into litigation, and twice as likely to file a bodily injury claim, which directly impacts insurance premiums across the state.