The Webster-based Commerce Group Inc. said its Pleasanton, Calif.-based subsidiary, Commerce West Insurance Co., reached a general agency agreement with Stonewood Insurance Services Inc. of Rancho Cordova, Calif.
Under the agreement, Stonewood expects to place up to $170 million in California private automobile insurance policies with Commerce West over the next three years.
Commerce expects to write $20 million in premiums during the first year of the new relationship, and $100 million in the third year.
Stonewood would be responsible for the sale of certain Commerce West policies. Stonewood has a retail insurance network throughout California.
Commerce also expects Stonewood to provide billing, customer service, policy processing and management services under the new agreement.
