Des Moines-based American Republic Mutual Holding Co., parent company of American Republic Insurance Co., signed a letter of intent Aug. 18 with Omaha-based World Insurance Co., a mutual insurance holding company. The letter is the first step of a potential transaction between the companies in which World would become a subsidiary of American Republic, boosting the latter’s assets by more than $230 million, company officials said.

Paul Burkett, vice president of American Republic Insurance Co., said the companies could reach an agreement in about 60 days following approval by each company’s board of directors. The transaction would then be subject to approval by World’s policyholders and government regulators.

“If this goes through, we would be very excited to have them on board,” Burkett said.

After the merger is completed, the World name would be used as an enterprise name brand for large independent agencies, company officials said. World would continue to operate from its base in Omaha, but its enterprise headquarters would be in Des Moines. World would join The Entercor Group Inc., The Americare Corp. and American Republic Insurance Co. as subsidiaries of the American Republic Mutual Holding Co.

Last year, World reported $232.6 million in assets, $65.9 million in surplus and $207 million in premium income. It employs approximately 240 people and is authorized to conduct business in 46 states and the District of Columbia.

The American Republic companies employ approximately 700 people. Last year, American Republic Insurance Co. reported $456 million in assets, $183 million in surplus and $394 million in premium income. It is authorized to conduct business in 49 states and the District of Columbia.