SAN FRANCISCO -– An investor group led by the private equity firm Hellman & Friedman LLC has signed a stock purchase agreement to acquire Universal Underwriters Group from Zurich Financial Services Group.

The transaction is valued at approximately $1.1 billion. Universal Underwriters provides property and casualty insurance to U.S. franchised automotive dealerships.

Investing alongside Hellman & Friedman will be Farallon Capital Management LLC, GIC Special Investments Pte Ltd. and Universal Underwriters’ management. Post closing, the investor group will own 100 percent of Universal Underwriters. The transaction is expected to close in the third quarter of 2005, subject to regulatory approval.

"We are pleased to announce our acquisition of Universal Underwriters," said David R. Tunnell, managing director of Hellman & Friedman. "We believe this group has a unique franchise within the world of insurance by virtue of being a market leading direct writer that employs its own proprietary sales force to serve a specialty customer niche."

Universal Underwriters has maintained its own brand identity since it was acquired by Zurich in 1982. For the fiscal year ended Dec. 31, 2004, Universal Underwriters generated approximately $1.5 billion in gross written premium. The company currently employs about 1,800 people in its Overland Park, Kan., headquarters and 28 regional offices located throughout the United States.